Foot Locker 2026 Q2 Earnings Wider Losses Amid Strategic Merger

Foot Locker (FL) reported its fiscal 2026 Q2 earnings on Sep 02nd, 2025, posting a wider loss amid ongoing challenges in international and WSS segments. Despite positive North American sales, the company’s total revenue declined by 2.4% year-over-year to $1.85 billion, while losses widened to $0.39 per share compared to $0.13 in the prior year. The pending merger with DICK’S Sporting Goods remains on track for September 8, 2025.

Foot Locker reported total revenue of $1.85 billion in 2026 Q2, a 2.4% decline from $1.90 billion in the same period in 2025. Segment performance showed that stores generated $1.52 billion in revenue, with direct-to-consumers contributing $334 million and other revenue at $6 million. Total revenue, including corporate expenses and impairment charges, was reported at $1.86 billion, with no division profit recorded.

The company’s losses deepened to $0.39 per share in 2026 Q2, a 200.0% wider loss compared to $0.13 per share in the prior year. Net loss expanded to $-38 million, a 216.7% increase from $-12 million in the same period in 2025. Both GAAP and non-GAAP metrics showed deteriorating performance, with GAAP EPS at $-0.39 and non-GAAP EPS at $-0.27. The broader loss reflects a difficult operating environment, particularly in international and WSS operations.

Foot Locker’s stock has seen mixed performance following the earnings release. The stock price edged up 0.17% during the latest trading day, though it has tumbled 8.63% during the most recent full trading week and dropped 3.55% month-to-date. The market appears to be reacting to both the earnings and the impending merger with DICK’S.

William Reilly, CEO of DICK’S Sporting Goods, emphasized the strategic alignment and long-term value creation from the upcoming Merger with Foot Locker, noting the combined company’s enhanced market position in footwear and apparel retailing. He highlighted the importance of leveraging DICK’S omnichannel capabilities and Foot Locker’s global sneaker authority to drive growth, while expressing confidence in the transaction’s benefits for customers, employees, and shareholders. Reilly conveyed an optimistic tone, underscoring the transformative potential of the Merger and the commitment to a seamless integration process.

DICK’S Sporting Goods expects the Merger with Foot Locker to close on September 8, 2025, subject to customary closing conditions. The company confirmed that the Merger is not expected to impact forward-looking guidance at this time. Foot Locker shareholders who did not elect to receive stock consideration will receive cash for their shares, with approximately 92.6% of outstanding shares opting for DICK’S stock and 1.2% for cash. Final election results are pending but are expected shortly before the Merger closes.

Additional News

Foot Locker, Inc. reported its second-quarter 2025 results on August 27, 2025, with total sales declining 2.4% year-over-year to $1.85 billion, compared to $1.896 billion in the same period in 2024. The company also reported a GAAP EPS loss of $0.39 and a non-GAAP EPS loss of $0.27, reflecting a challenging operating environment. Despite these setbacks, the company continues its store modernization efforts, having completed 52 store refreshes and opened 11 reimagined stores, including two Champs Sports locations.

Another key development is the successful launch of the enhanced FLX Rewards Program in Europe, aimed at deepening global customer engagement. CEO Mary Dillon noted the company’s focus on improving the customer experience through brand partnerships and digital platform enhancements, particularly as the Back-to-School season began in July. However, weak store traffic and performance in the WSS and international businesses tempered these gains.

Foot Locker also announced the receipt of shareholder approval for its acquisition by DICK’S Sporting Goods. All regulatory approvals have been received, and the transaction is expected to close on September 8, 2025. As a result, the company will not hold a conference call to discuss its Q2 2025 results or provide updated financial guidance. The acquisition is expected to transform the company’s market position, leveraging DICK’S omnichannel capabilities and Foot Locker’s global sneaker authority to drive future growth.