Foot Locker Reports Q2 2025 Financials: Total Sales Down 2.4%, North America Shows Resilience.

Foot Locker reported Q2 2025 financial results with total sales declining 2.4% YoY to $1.85 bln, and comparable sales down 2.0%. North American comparable sales increased 1.4%, driven by strong performance from Foot Locker, Kids Foot Locker, and Champs Sports banners. International sales declined 10.3%, and the gross margin decreased by 50 basis points YoY. The company posted a GAAP loss of $0.39 per share and a non-GAAP loss of $0.27 per share.

Foot Locker Inc. (NYSE: FL) has reported its second-quarter 2025 financial results, reflecting a challenging operating environment and mixed performance across its global retail operations. The company's total sales declined 2.4% year-over-year (YoY) to $1,851 million, with North American comparable sales increasing 1.4% while international sales fell 10.3% [1].

The company's gross margin decreased by 50 basis points YoY, attributed to lower merchandise margin and increased selling, general, and administrative (SG&A) expenses as a share of sales. This led to a GAAP loss of $0.39 per share and a non-GAAP loss of $0.27 per share [1].

North American comparable sales were driven by strong performance from Foot Locker, Kids Foot Locker, and Champs Sports banners, with Kids Foot Locker and Champs Sports seeing comparable sales increases of 7.6% and 2.0%, respectively [1]. However, the company's WSS brand experienced a 8.1% decline in comparable sales, reflecting soft store traffic, particularly internationally [1].

Foot Locker's store modernization efforts continued, with 52 stores refreshed and 14 remodeled or relocated. The company also successfully launched an enhanced FLX Rewards Program in Europe and opened two new Champs Sports stores [1].

The company's acquisition by DICK'S Sporting Goods, expected to close on September 8, 2025, has led to a lack of forward financial guidance for fiscal 2025. Foot Locker's management cited regulatory constraints related to the pending acquisition as the reason for not providing guidance [1].

Looking ahead, Foot Locker will continue to focus on strategic initiatives such as store modernization and enhancing its digital presence. The company's operational risks, including persistent international weakness and margin deterioration, will be key areas of focus for investors and industry observers [1].

References:
[1] https://www.nasdaq.com/articles/foot-locker-reports-24-q2-revenue-drop