Foot Locker 2026 Q1 Earnings Misses Targets with Net Loss of 4637.5%

Foot Locker (FL) reported its fiscal 2026 Q1 earnings on May 28th, 2025. The total revenue of Foot Locker decreased by 4.6% to $1.79 billion in 2026 Q1, down from $1.87 billion in 2025 Q1. The company's results missed expectations as it swung to a significant loss, reflecting challenges in the current market. In light of the merger agreement with DICK'S Sporting Goods, Foot Locker will not provide or update previously issued financial guidance. The company has refrained from offering future expectations regarding capital expenditures, strategic plans, or financial objectives due to the pending transaction, thus maintaining a cautious outlook moving forward.

Revenue

Earnings/Net Income
Foot Locker swung to a loss of $3.82 per share in 2026 Q1 from a profit of $0.08 per share in 2025 Q1, representing a 4624.1% negative change. The company reported a net loss of $-363 million in 2026 Q1, reflecting a 4637.5% deterioration from the net income of $8 million achieved in 2025 Q1. The EPS results indicate a challenging quarter for Foot Locker.

Price Action

Post-Earnings Price Action Review
The strategy of buying Foot Locker shares after a revenue miss and holding for 30 days resulted in poor performance, yielding a total return of -28.76%. This was significantly below the benchmark return of 86.09%, resulting in an excess return of -114.85%. The Sharpe ratio stood at -0.10, reflecting substantial risk, with a maximum drawdown of -87.65% and a volatility of 67.17%. These metrics suggest that the post-earnings strategy has been risky and underperformed significantly compared to the market benchmark.

CEO Commentary
Mary Dillon, Chief Executive Officer, highlighted ongoing execution of the Lace Up Plan strategies amidst softer global traffic trends affecting performance. She emphasized focus on enhancing the in-store experience through the Reimagined and Refresh programs, improving digital offerings, and fostering customer engagement via the FLX program. Dillon noted the importance of leveraging brand partnerships to drive customer excitement while navigating a challenging macroeconomic environment by managing promotional levels, inventories, and expenses, and maintaining cash flow discipline.

Guidance
In light of the merger agreement with DICK'S Sporting Goods, Foot Locker will not provide or update previously issued financial guidance. The company has refrained from offering future expectations regarding capital expenditures, strategic plans, or financial objectives due to the pending transaction, thus maintaining a cautious outlook moving forward.

Additional News
Foot Locker has been the subject of significant M&A activity recently, with DICK'S Sporting Goods announcing its acquisition of the company for approximately $2.4 billion. This strategic move is expected to position DICK'S as a global leader in the sports retail industry by leveraging Foot Locker's extensive international network. Additionally, Foot Locker has appointed Franklin R. Bracken as President, bringing his extensive experience to the role. These recent developments underscore Foot Locker's strategic shifts and leadership changes as it navigates the current retail landscape.