Foot Locker (FL) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: N/A
• Average Volume (3M): 3.93M
• Price to Earnings (P/E): 194.6
• Beta (1Y): 2.28
• Revenue Growth: -2.62%
• EPS Growth: 0.93%
• Country: US
• Employees: 13,140
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Retail
• EPS (TTM): 0.86
• Shares Outstanding: 95,277,630
• 10 Day Avg. Volume: 4,201,891
• 30 Day Avg. Volume: 3,926,767
• PEG Ratio: <0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.65
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: -16.14
• 1Y Price Target: $21.90
• Price Target Upside: -11.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 51 Neutral
• Price Target: $25.00 ▲(0.89%Upside)

Foot Locker's overall stock score reflects significant financial challenges and valuation concerns, partially offset by positive technical indicators and strategic advancements highlighted in the earnings call. The merger announcement adds uncertainty, impacting the stock's attractiveness.

Positive Factors

Acquisition

FL announces acquisition by DKS at a ~90% premium.

Cost Synergies

The transaction is expected to be accretive to EPS in the first full fiscal year post-close and sees $100-$125M in cost synergies in the medium-term through procurement and direct sourcing efficiencies.

Shareholder Value

The expensive purchase price represents a positive outcome for FL shareholders.

Negative Factors

Consumer Trends

Foot Locker is navigating significant uncertainty given consumer softness, tariff headwinds, and continued weakness among its largest vendor, Nike.

Earnings Expectations

Q1 results were below expectations, with decelerating comps in most banners/regions.

Sales Performance

Foot Locker's international exposure is a new challenge for Dick's Sporting Goods, especially with the weakness of the EMEA business.

Foot Locker Business Overview & Revenue Model

Company Description

Foot Locker, Inc. is a leading global retailer specializing in athletic footwear and apparel. Headquartered in New York City, the company operates several retail brands including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, and Eastbay. Foot Locker is renowned for offering a wide selection of premium products from popular brands such as Nike, Adidas, and Puma, focusing primarily on the sportswear and streetwear sectors. The company's retail presence spans across North America, Europe, Asia, and Oceania, positioning it as a key player in the athletic retail industry.

How the Company Makes Money

Foot Locker generates revenue primarily through the sale of athletic footwear, apparel, and accessories across its various retail brands. The company operates a network of physical stores globally and also offers its products via online platforms, catering to a broad customer base. Significant revenue streams include direct sales to consumers in stores and through e-commerce channels. Foot Locker partners with major sports brands to offer exclusive and limited-edition products, which can drive higher sales volumes and margins. The company also engages in strategic collaborations and sponsorships to enhance brand visibility and attract diverse customer segments. Key factors contributing to Foot Locker's earnings include its extensive brand portfolio, strong supplier relationships, and the ability to adapt to changing consumer trends in the sports and lifestyle markets.

Foot Locker Financial Statement Overview

Summary

Foot Locker is experiencing financial challenges with declining revenues and profitability, reflected in the negative EBIT and EBITDA margins. The balance sheet shows increasing leverage with potential financial risks, while cash flow remains operationally positive but under pressure due to net losses.

Income Statement

Foot Locker's income statement reveals declining revenue with a negative trajectory in the TTM period. Gross profit margin has decreased, and the company is experiencing significant net losses, indicating challenges in managing costs and sustaining profitability. The negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, though the increasing debt levels relative to equity pose potential financial risk. Equity has decreased over recent periods, impacting the equity ratio negatively. Stability of assets remains, but financial leverage is a concern.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, but operating cash flow remains positive, suggesting some ability to cover operational costs. However, the free cash flow to net income ratio is unfavorable due to net losses, highlighting pressures on liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.90B	7.99B	8.17B	8.76B	8.96B	7.55B
Gross Profit	2.29B	2.32B	2.27B	2.80B	3.08B	2.18B
EBITDA	-19.00M	277.00M	-200.00M	859.00M	1.25B	606.00M
Net Income	-359.00M	12.00M	-330.00M	342.00M	893.00M	323.00M
Balance Sheet
Total Assets	6.56B	6.75B	6.87B	7.91B	8.14B	7.04B
Cash, Cash Equivalents and Short-Term Investments	343.00M	401.00M	297.00M	536.00M	804.00M	1.68B
Total Debt	2.83B	2.78B	2.94B	3.23B	3.39B	3.19B
Total Liabilities	3.95B	3.84B	3.98B	4.61B	4.89B	4.26B
Stockholders Equity	2.61B	2.91B	2.89B	3.29B	3.24B	2.78B
Cash Flow
Free Cash Flow	62.00M	105.00M	-151.00M	-112.00M	457.00M	903.00M
Operating Cash Flow	284.00M	345.00M	91.00M	173.00M	666.00M	1.06B
Investing Cash Flow	-216.00M	-240.00M	-222.00M	-162.00M	-1.38B	-168.00M
Financing Cash Flow	-10.00M	-7.00M	-120.00M	-279.00M	-152.00M	-126.00M

Foot Locker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FL, the sentiment is Positive. The current price of 24.78 is above the 20-day moving average (MA) of 24.26, above the 50-day MA of 20.59, and above the 200-day MA of 20.53, indicating a bullish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 75.54 is Negative, neither overbought nor oversold. The STOCH value of 68.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FL.

Foot Locker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	78 Outperform	$2.77B	9.51	25.15%	―	-1.35%	-39.06%
VC	78 Outperform	$2.77B	9.51	25.15%	―	-1.35%	-39.06%
SHOO	73 Outperform	$1.89B	11.20	19.51%	3.23%	10.17%	-4.71%
SHOO	73 Outperform	$1.89B	11.20	19.51%	3.23%	10.17%	-4.71%
Sector *	63 Neutral	$16.67B	10.98	-6.97%	2.95%	1.72%	-24.21%
AEO	54 Neutral	$1.72B	10.14	12.19%	4.86%	-0.95%	-10.51%
AEO	54 Neutral	$1.72B	10.14	12.19%	4.86%	-0.95%	-10.51%
SPB	52 Neutral	$1.35B	26.28	2.79%	3.23%	1.46%	-95.70%
SPB	52 Neutral	$1.35B	26.28	2.79%	3.23%	1.46%	-95.70%
FL	51 Neutral	$2.36B	194.63	-12.85%	―	-2.62%	0.93%
KSS	51 Neutral	$1.04B	8.60	3.19%	5.39%	-7.03%	-56.59%
KSS	51 Neutral	$1.04B	8.60	3.19%	5.39%	-7.03%	-56.59%

Foot Locker Corporate Events

Foot Locker Announces Merger with DICK’S Subsidiary

Foot Locker, Inc. announced a proposed merger with a subsidiary of DICK’S Sporting Goods, Inc., involving an exchange offer for outstanding senior notes. The company has received the necessary consents to adopt amendments to its Indenture, which will become operative contingent upon the merger’s completion or the settlement of the exchange offer, impacting the company’s financial agreements and potentially its market positioning.

The most recent analyst rating on (FL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Foot Locker stock, see the FL Stock Forecast page.

Foot Locker Shareholders Approve Key Proposals at Meeting

On May 21, 2025, Foot Locker, Inc. held its annual meeting of shareholders, where several key proposals were voted on. Shareholders approved an amendment to the 2007 Stock Incentive Plan and ratified the appointment of KPMG LLP as the independent registered public accounting firm for fiscal year 2025. However, a shareholder proposal to adopt a goal for reducing greenhouse gas emissions in line with the Paris Agreement was not approved. These decisions reflect Foot Locker’s ongoing strategic priorities and stakeholder engagement, impacting its operational and environmental strategies.

The most recent analyst rating on (FL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Foot Locker stock, see the FL Stock Forecast page.

Foot Locker Announces Merger with DICK’S Sporting Goods

On May 15, 2025, Foot Locker, Inc. entered into a merger agreement with DICK’S Sporting Goods, Inc., where Foot Locker will be acquired by DICK’S, with the merger subject to approval by shareholders and regulatory conditions. The merger will result in Foot Locker’s shares being delisted from the NYSE, and shareholders will have the option to receive cash or shares of DICK’S stock. The agreement includes provisions for the treatment of equity awards and conditions for closing, such as shareholder approval and regulatory clearances. Termination fees are outlined should the merger not proceed under specific circumstances.

The most recent analyst rating on (FL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Foot Locker stock, see the FL Stock Forecast page.

Foot Locker Announces Merger with DICK’S Sporting Goods

On May 15, 2025, Foot Locker and DICK’S Sporting Goods announced a definitive merger agreement under which DICK’S will acquire Foot Locker for approximately $2.4 billion in equity value. This transaction, subject to shareholder and regulatory approval, is expected to close in the second half of 2025. Additionally, Foot Locker reported preliminary financial results for the first quarter of 2025, showing a net loss of $363 million compared to a net income of $8 million in the previous year. The company experienced a 2.6% decrease in comparable sales, with North America sales down by 0.5%, and attributed these results to softer global traffic trends and an uncertain macroeconomic environment.

The most recent analyst rating on (FL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Foot Locker stock, see the FL Stock Forecast page.