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Foot Locker (FL)
NYSE:FL
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Foot Locker
(NYSE:FL)
56Neutral
Positive Factors
Brand Partnerships
The partnership between Nike and Footlocker, with initiatives like 'Home Court' and 'The Clinic' experiences, is seen as encouraging.
Leadership Changes
Frank Bracken's promotion to President is seen as recognition of his great work.
Portfolio Brand Growth
Strong growth from Footlocker's portfolio brands like Adidas, New Balance, ASICS, On, HOKA, UGG, and Timberland is encouraging.
Negative Factors
Guidance and Performance
Foot Locker missed the midpoint of initial annual guidance by significant margins in recent fiscal years.
Market Environment
The uncertain consumer environment is leading to lower-than-expected earnings guidance for the first half of the year, although a recovery is expected in the second half.
Nike Inventory Issues
Nike's continued inventory clearance and higher markdowns could negatively impact Footlocker's short-term performance.
Foot Locker (FL) vs. S&P 500 (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)4.98M
Price to Earnings (P/E)96.9
Beta (1Y)1.35
Revenue Growth-2.20%
EPS GrowthN/A
CountryUS
Employees13,140
SectorConsumer Cyclical
Sector Strength58
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.12
Shares Outstanding94,954,370
10 Day Avg. Volume6,051,394
30 Day Avg. Volume4,978,225
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.19
Price to Cash Flow (P/CF)-13.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.67Price Target Upside61.37% Upside
Rating ConsensusHold
Number of Analyst Covering16
Foot Locker Business Overview & Revenue Model
Company DescriptionFoot Locker, Inc. (FL) is a leading global retailer of athletic footwear and apparel. Headquartered in New York City, the company operates through various retail stores and e-commerce platforms under several brand names, including Foot Locker, Kids Foot Locker, Champs Sports, and Eastbay. Foot Locker serves a diverse customer base by offering a wide range of sportswear and accessories from major brands like Nike, Adidas, Puma, and Under Armour, catering to athletes and casual sportswear enthusiasts alike.
How the Company Makes MoneyFoot Locker makes money primarily through the sale of athletic footwear and apparel. The company's revenue model is based on retail sales across its physical stores and online platforms. Key revenue streams include direct sales from its branded stores and e-commerce websites. Foot Locker also benefits from strategic partnerships with major sportswear brands, which allow them to offer exclusive products and limited-edition releases that drive consumer demand. Additionally, the company leverages its global presence to capitalize on emerging markets and expand its customer base, contributing to its overall earnings.
Foot Locker Financial Statement Overview
Summary
Foot Locker's financial statements indicate challenges in growth and profitability. The income statement shows declining margins and revenues, with a net profit margin of 0.15%. The balance sheet is stable with a reasonable debt-to-equity ratio of 0.96, but ROE is low. Cash flow management has improved, with free cash flow turning positive, but profitability remains a concern. Overall, financial performance is moderate, requiring improvement in sales growth and operational efficiency.Income Statement
Foot Locker's income statement reveals a concerning trend in revenue and profitability. The gross profit margin is 29.07% for the latest fiscal year, but net profit margin has fallen sharply to 0.15% due to a significant decrease in net income. Revenue has declined over the past two years, indicating challenges in sales growth. The EBIT margin has decreased to 1.29%, reflecting pressure on operational efficiency. EBITDA margin is 4.86%, also showing a decline from previous years. These trends suggest weakening profitability and growth prospects.55
Neutral
Balance Sheet
The balance sheet indicates a balanced financial structure with a debt-to-equity ratio of 0.96, which is reasonable for the retail industry. Return on Equity (ROE) is low at 0.41%, reflecting reduced profitability. The equity ratio stands at 43.11%, showing a stable base of equity financing. Overall, the balance sheet suggests moderate financial stability but highlights the need to improve returns on equity.60
Neutral
Cash Flow
Foot Locker's cash flow statement shows improvement in free cash flow, which grew from negative to $105 million, indicating better cash management. The operating cash flow to net income ratio is 28.75, reflecting strong cash flow generation despite low net income. The free cash flow to net income ratio is 8.75, suggesting that while cash flow is improving, profitability needs attention. Overall, the cash flow situation has improved but remains a concern due to low profitability.65
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.99B | 8.17B | 8.76B | 8.96B | 7.55B | Gross Profit |
| 2.32B | 2.27B | 2.80B | 3.08B | 2.18B | EBIT |
| 103.00M | 142.00M | 581.00M | 1.43B | 537.00M | EBITDA |
| 388.00M | -200.00M | 859.00M | 1.25B | 606.00M | Net Income Common Stockholders |
| 12.00M | -330.00M | 342.00M | 893.00M | 323.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 401.00M | 297.00M | 536.00M | 804.00M | 1.68B | Total Assets |
| 6.75B | 6.87B | 7.91B | 8.14B | 7.04B | Total Debt |
| 2.78B | 2.94B | 3.23B | 3.39B | 3.19B | Net Debt |
| 2.38B | 2.65B | 2.69B | 2.59B | 1.51B | Total Liabilities |
| 3.84B | 3.98B | 4.61B | 4.89B | 4.26B | Stockholders Equity |
| 2.91B | 2.89B | 3.29B | 3.24B | 2.78B |
| Cash Flow | Free Cash Flow | |||
| 105.00M | -151.00M | -112.00M | 457.00M | 903.00M | Operating Cash Flow |
| 345.00M | 91.00M | 173.00M | 666.00M | 1.06B | Investing Cash Flow |
| -240.00M | -222.00M | -162.00M | -1.38B | -168.00M | Financing Cash Flow |
| -7.00M | -120.00M | -279.00M | -152.00M | -126.00M |
Foot Locker Technical Analysis
Negative
11.57
Price Trends
15.77
Negative
18.63
Negative
22.46
Negative
Market Momentum
-1.32
Negative
36.31
Neutral
21.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FL, the sentiment is Negative. The current price of 11.57 is below the 20-day moving average (MA) of 12.96, below the 50-day MA of 15.77, and below the 200-day MA of 22.46, indicating a bearish trend. The MACD of -1.32 indicates Negative momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of 21.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FL.
Foot Locker Risk Analysis
Foot Locker disclosed 40 risk factors in its most recent earnings report. Foot Locker reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Foot Locker Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.84B | 6.94 | 24.17% | ― | -2.23% | -42.94% | |
70 Outperform | $1.45B | 8.49 | 20.20% | 4.22% | 15.03% | 1.51% | |
66 Neutral | $1.61B | 15.08 | 4.91% | 3.02% | 2.56% | -91.05% | |
65 Neutral | $1.85B | 6.40 | 18.80% | 4.66% | 1.27% | 96.32% | |
59 Neutral | $6.44B | 11.30 | 3.27% | 4.27% | 2.37% | -21.19% | |
58 Neutral | $781.49M | 7.21 | 2.83% | 25.08% | -7.18% | -65.92% | |
56 Neutral | $1.13B | 96.91 | 0.62% | ― | -2.20% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
FL
Foot Locker
11.57
-10.67
-47.98%
AEO
American Eagle
11.03
-11.39
-50.80%
KSS
Kohl's
6.76
-16.32
-70.71%
SPB
Spectrum Brands Holdings
60.45
-18.44
-23.37%
SHOO
Steven Madden
20.51
-19.07
-48.18%
VC
Visteon
73.63
-36.18
-32.95%
Foot Locker Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -33.39% | Next Earnings Date: May 16, 2025
Earnings Call Sentiment Neutral
Foot Locker demonstrated positive momentum through consecutive quarters of comp sales growth and gross margin expansion, driven by strong brand partnerships and successful store and digital initiatives. However, challenges remain in segments such as apparel, WSS, and certain international markets, which reflect cautious consumer behavior and regional market dynamics.Highlights
Positive Comp Sales Growth
Foot Locker reported three consecutive quarters of positive comp sales, with a total comp increase of 2.6% in the fourth quarter, driven by strong performance in the Foot Locker and Kids Foot Locker banners.
Gross Margin Expansion
The company achieved a 300 basis point improvement in gross margin year-over-year, attributed to merchandise margin recovery and cost savings, despite a promotional environment.
Successful Store Refresh Program
In 2024, Foot Locker completed over 400 store refreshes and plans to refresh about 300 more in 2025, with positive customer feedback and improved store performance.
Digital and Loyalty Program Advancements
Foot Locker launched a new mobile app in the US, increasing digital penetration by 100 basis points to 18.2%, and saw a significant increase in sales capture rate from its FLX Rewards Program.
Strong Brand Partnerships
Foot Locker strengthened its partnerships with brands such as Nike, Adidas, New Balance, and ASICS, with double-digit sales growth reported in those brands.
Lowlights
Apparel Business Challenges
The apparel segment faced comp declines down in the mid-teens, due to a lag in innovation compared to footwear.
WSS Segment Performance
WSS saw a comparable sales decline of 3.3%, with consumers being cautious with discretionary spending and the impacts of inflation and natural disasters in key markets.
Underperformance in Asia Pacific
Comps in the Asia Pacific region were down 7.6%, affected by competitive dynamics and the winding down of operations in South Korea.
Atmos Segment Decline
Atmos experienced an 8.7% decline in comps, partly due to a strategic shift away from less profitable third-party digital platforms.
Company Guidance
In Foot Locker's fourth quarter earnings call for fiscal year 2024, CEO Mary Dillon highlighted the company's robust performance and strategic advancements. The company reported a total comp sales increase of 2.6% for the quarter, with Foot Locker and Kids Foot Locker banners showing a comp growth of 3.6%, largely due to strong holiday sales. Champs Sports also marked a second consecutive quarter of positive comps with a 1.8% increase. Gross margins improved by 300 basis points year-over-year, driven by merchandise margin recovery and cost savings efforts, which generated $35 million in the fourth quarter alone. Non-GAAP earnings per share exceeded revised expectations at $0.86, compared to the guidance of $0.70 to $0.80. The company also made significant progress in its Lace Up Plan, completing over 400 store Refreshes in 2024 and planning 300 more in 2025. Digital advancements included a new mobile app rollout and increased digital penetration to 18.2%. The FLX Rewards Program saw strong adoption, with sales capture reaching 49% in North America, close to the 50% target for 2026. Foot Locker also achieved $100 million in cost savings in 2024, ahead of the expected $90 million, and is targeting additional savings of $60 million to $70 million in 2025. Despite consumer caution and external uncertainties, the company remains focused on driving profitable market share gains through continued strategic investments and cost management.Foot Locker Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Foot Locker Appoints Franklin Bracken as President
Positive
Mar 26, 2025
On March 25, 2025, Foot Locker, Inc. announced the appointment of Franklin R. Bracken as President, effective March 26, 2025. Bracken, who has been with the company since 2010, will continue to report to CEO Mary Dillon and will work to accelerate the company’s Lace Up Plan, focusing on enhancing the omni-retail experience and creating long-term shareholder value. Bracken’s extensive experience in brand management and retail operations positions him to further strengthen Foot Locker’s market position and drive meaningful business results.
Business Operations and StrategyFinancial Disclosures
Foot Locker Reports Q4 2024 Financial Results
Neutral
Mar 5, 2025
Foot Locker, Inc. reported its financial results for the fourth quarter of 2024, showing a 5.8% decrease in total sales year-over-year, but a 2.6% increase in comparable sales. The company achieved a gross margin expansion of 300 basis points and a significant improvement in net income from continuing operations compared to the previous year. Foot Locker completed 160 store refreshes in the quarter and issued a cautious outlook for 2025, anticipating continued consumer and promotional pressures. The company plans to focus on customer-facing investments and brand partnerships to drive growth and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.