Foot Locker (FL) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: N/A
• Average Volume (3M): 7.76M
• Price to Earnings (P/E): 194.6
• Beta (1Y): 2.32
• Revenue Growth: -2.62%
• EPS Growth: 0.93%
• Country: US
• Employees: 13,140
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): 0.86
• Shares Outstanding: 95,277,630
• 10 Day Avg. Volume: 4,041,941
• 30 Day Avg. Volume: 7,761,888
• PEG Ratio: -0.21
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.03
• Enterprise Value/Market Cap: 2.86
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.88
• Enterprise Value/Ebitda: -12.60
• 1Y Price Target: $21.64
• Price Target Upside: -9.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 56 Neutral
• Price Target: ―

Foot Locker faces significant challenges in profitability and valuation, reflected in a low financial performance score and stretched P/E ratio. Although the earnings call provided some positive insights, technical indicators suggest caution. Recent corporate events introduce both opportunities and risks. Overall, the stock is under pressure but holds potential for recovery if strategic initiatives succeed.

Positive Factors

Acquisition

Foot Locker has entered into an agreement to be acquired by Dick's Sporting Goods for $24 per share, translating to a 66% premium to FL's 60-day volume weighted average price.

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

Financial Performance

Foot Locker's 1Q25 results were well below the consensus estimates.

Global Traffic Trends

The company cited softer traffic trends globally that impacted performance.

International Exposure

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's financial performance reveals challenges in growth and profitability. The income statement shows declining revenue and profitability margins, although the balance sheet maintains moderate stability with reasonable leverage. Cash flow management has improved with positive free cash flow, but overall profitability remains a concern.

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.

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.

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.

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
277.00M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 24.02
• 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 24.02 is above the 20-day moving average (MA) of 23.93, above the 50-day MA of 17.12, and above the 200-day MA of 20.77, indicating a bullish trend. The MACD of 1.93 indicates Positive momentum. The RSI at 77.08 is Negative, neither overbought nor oversold. The STOCH value of 66.42 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	83 Outperform	$2.45B	8.41	25.15%	―	-1.35%	-39.06%
SHOO	76 Outperform	$1.67B	9.92	19.51%	3.65%	10.17%	-4.71%
AEO	64 Neutral	$1.61B	9.53	12.19%	5.37%	-0.95%	-10.51%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
KSS	59 Neutral	$909.78M	7.52	3.19%	6.16%	-7.03%	-56.59%
SPB	58 Neutral	$1.29B	24.74	2.79%	3.63%	1.46%	-95.70%
FL	56 Neutral	$2.29B	194.63	-12.85%	―	-2.62%	0.93%

Foot Locker Corporate Events

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.

Foot Locker Appoints Franklin Bracken as President

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.