Foot Locker 2026 Q2 Earnings Deepened Losses Amid Revenue Decline

Foot Locker (FL) reported its fiscal 2026 Q2 earnings on Aug 27th, 2025. The company faced a challenging quarter marked by a 2.4% year-over-year revenue decline, widened losses, and mixed regional performance. The report fell short of expectations, with no guidance provided due to the pending DICK’S acquisition. The lack of forward-looking statements underscores uncertainty surrounding the company’s operational direction.

Revenue

Foot Locker’s total revenue for 2026 Q2 declined by 2.4% to $1.85 billion, compared to $1.90 billion in the same period in 2025. Despite a 1.4% increase in North American comparable sales, driven by Foot Locker, Kids Foot Locker, and Champs Sports banners, international and Europe-Pacific regions posted significant declines. The Champs Sports banner saw its fourth consecutive quarter of positive sales growth, with a 2.0% increase in comparable sales. However, the WSS segment reported a 5.2% decline in sales, and the Asia-Pacific and EMEA regions combined to decrease by 10.3%. The overall decline in revenue was partially attributed to softer store traffic and foreign exchange impacts.

Earnings/Net Income

Foot Locker’s losses widened significantly in 2026 Q2, with a net loss of $38 million, representing a 216.7% increase from the $12 million loss in 2025 Q2. On a per-share basis, the company’s loss expanded to $0.39 from $0.13, a 200.0% wider loss. Non-GAAP net loss was $27 million, or $0.27 per share, compared to $4 million, or $0.05 per share, in the prior-year period. The substantial increase in losses highlights the financial strain from declining sales, impairment charges, and ongoing operational challenges. The EPS results represent a significant deterioration in performance.

Price Action

Foot Locker’s stock edged down 0.11% during the latest trading day, although it showed resilience with a 3.24% rise during the most recent full trading week and a 3.16% increase month-to-date. These figures indicate some investor confidence despite the earnings disappointment.

Post-Earnings Price Action Review

Foot Locker has historically underperformed the market following earnings reports that raise revenue expectations. Over the past three years, the stock has delivered a -11.43% CAGR, with a maximum drawdown of 0.00%. The negative returns are accompanied by a Sharpe ratio of -0.15, signifying poor risk-adjusted performance. This trend highlights the market’s skepticism regarding Foot Locker’s ability to deliver consistent growth or turnaround in the near term.

CEO Commentary

Mary Dillon, Chief Executive Officer, emphasized sequential momentum and progress in North America, particularly through the Foot Locker, Kids Foot Locker, and Champs Sports banners. However, she acknowledged a difficult operating environment with soft store traffic, especially in the WSS and international segments. Dillon reiterated the company’s commitment to the Lace Up Plan, including store modernization, digital improvements, and customer engagement through the FLX Rewards Program. She also expressed optimism about the pending acquisition by DICK’S Sporting Goods, which has received shareholder and regulatory approvals and is expected to close on September 8, 2025.

Guidance

Foot Locker did not provide explicit forward-looking guidance in its 8-K filing. The company has opted not to host an earnings call due to the pending acquisition, leaving investors without updated projections for the remainder of the fiscal year.

Additional News

The most significant non-earnings related news centered around the acquisition of Foot Locker by DICK’S Sporting Goods, which received shareholder approval on August 22, 2025. Regulatory clearances were also secured, and the transaction is expected to close on September 8, 2025. The acquisition has shifted focus away from short-term operational performance toward the strategic integration and long-term growth potential under DICK’S umbrella. Additionally, the company announced 52 store refreshes and the opening of 11 reimagined stores, including the first two Champs Sports locations, reflecting ongoing efforts to modernize the retail footprint. The successful launch of the enhanced FLX Rewards Program in Europe was another key development, aimed at boosting customer engagement and loyalty.