Foot Locker Q2 2025 Financial Results: Challenges and Opportunities Amid Acquisition by DICK'S Sporting Goods

Foot Locker Inc reported a 2.4% decline in total sales for Q2 2025, with comparable sales down 2.0%. North American comparable sales increased by 1.4%, and the company refreshed 52 stores and opened 11 reimagined stores. The successful launch of the FLX Rewards Program in Europe and shareholder approval for the acquisition by DICK'S Sporting Goods are positive points.

Foot Locker Inc (NYSE: FL) reported a 2.4% decline in total sales for the second quarter of 2025, with comparable sales down by 2.0%. While North American comparable sales increased by 1.4%, the company refreshed 52 stores and opened 11 reimagined stores, indicating a continued focus on improving its retail footprint. The successful launch of the FLX Rewards Program in Europe and shareholder approval for the acquisition by DICK'S Sporting Goods are notable positive points.

The company's revenue for the quarter fell to $1.86 billion, a 2.3% year-on-year decline, missing analysts' estimates by 0.6% [1]. Adjusted earnings per share (EPS) came in at -$0.27, significantly below the consensus estimate of $0.10. Adjusted EBITDA was $32 million, down from $70.94 million in the previous year, representing a 54.9% miss. Operating margin was -1.4%, in line with the same quarter last year [1].

The company operated 2,354 locations at the end of the quarter, down from 2,464 in the same quarter last year, indicating a continued effort to optimize its store base. Same-store sales fell by 2%, year on year, representing a further deceleration from historical levels [1].

Despite the mixed results, the company's CEO, Mary Dillon, noted that the quarter saw sequential momentum and positive North American comparable sales led by the Foot Locker, Kids Foot Locker, and Champs Sports banners. The back-to-school season in July also contributed positively. However, challenges in the operating environment and soft store traffic trends, particularly in the WSS and international businesses, were cited as factors affecting performance [1].

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, indicating a continued struggle to catalyze better top-line performance from newer products [1].

References:
[1] https://finance.yahoo.com/news/foot-locker-nyse-fl-misses-120342740.html