Foot Locker (FL) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: N/A
• Average Volume (3M): 4.52M
• Price to Earnings (P/E): 194.6
• Beta (1Y): 2.29
• Revenue Growth: -3.58%
• EPS Growth: -4.20%
• Country: US
• Employees: 13,140
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Apparel - Retail
• EPS (TTM): -0.27
• Shares Outstanding: 95,576,110
• 10 Day Avg. Volume: 7,650,991
• 30 Day Avg. Volume: 4,520,179
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: -130.34
• 1Y Price Target: $24.67
• Price Target Upside: 2.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 49 Neutral
• Price Target: $24.50 ▲(2.04% Upside)

Foot Locker's overall stock score reflects significant financial challenges and a concerning valuation, tempered by positive corporate developments. The acquisition by DICK'S Sporting Goods offers a potential strategic advantage, but the company's current financial performance and technical indicators suggest caution. Investors should closely monitor the integration process and any strategic adjustments to improve profitability.

Positive Factors

Acquisition

The acquisition by Dick's Sporting Goods appears to be on track and is likely to close soon.

Nike Allocations

Foot Locker should see improvements going forward from better Nike allocations.

North America Performance

Momentum built in North America, with comps inflecting positively and management citing a positive start to the BTS season.

Negative Factors

Financial Performance

The slower than expected start to FY25 and incremental macro headwinds have led to a lowering of EPS forecasts.

International Challenges

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

Sales Trends

The pending acquisition has highlighted the weakness of Foot Locker's sales trends.

Foot Locker Business Overview & Revenue Model

Company Description

Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer. The company engages in the retail of athletic footwear, apparel, accessories, equipment, and team licensed merchandise under the Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, atmos, WSS, Footaction, and Sidestep brand names. As of January 29, 2022, it operated 2,858 retail stores in 28 countries across the United States, Canada, Europe, Australia, New Zealand, and Asia; and 142 franchised Foot Locker stores located in the Middle East and Asia. The company also offers its products through various e-commerce sites and mobile apps. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York.

How the Company Makes Money

Foot Locker primarily generates revenue through the sale of athletic footwear, apparel, and accessories. The company's revenue model is built on a combination of in-store sales and online transactions, with a growing emphasis on e-commerce to reach a broader customer base. Key revenue streams include direct sales of branded merchandise, exclusive product collaborations, and limited-edition releases that often drive higher demand. Additionally, Foot Locker benefits from strategic partnerships with major athletic brands, which often result in co-branded marketing initiatives and exclusive product offerings. The company's extensive loyalty program also plays a significant role in driving repeat business and customer retention, further contributing to its overall earnings.

Foot Locker Financial Statement Overview

Summary

Foot Locker is facing considerable financial challenges, particularly in terms of profitability and cash flow. The income statement reflects declining revenues and negative margins, while the balance sheet shows a stable yet strained financial position. Cash flow metrics highlight liquidity issues, with a significant drop in free cash flow. While the company has shown resilience in the past, current financials suggest a need for strategic adjustments to improve profitability and cash generation.

Income Statement

Foot Locker's income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) data shows a negative net profit margin of -4.90% and a declining revenue growth rate of -54.4%, indicating substantial revenue contraction. The gross profit margin has decreased over time, reflecting pressure on profitability. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies. Despite these challenges, the company has shown resilience in past years with positive margins, suggesting potential for recovery.

Balance Sheet

The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is 1.07 in the TTM, indicating a balanced approach to leveraging. However, the return on equity is negative at -14.05%, reflecting recent losses. The equity ratio is relatively stable, suggesting a solid asset base. While the company has managed its debt levels well, the recent negative ROE is a concern.

Cash Flow

Cash flow analysis indicates significant challenges. The TTM free cash flow growth rate is -90.32%, showing a sharp decline in cash generation. The operating cash flow to net income ratio is low at 0.067, and the free cash flow to net income ratio is only 0.027, indicating limited cash flow relative to earnings. These metrics suggest liquidity constraints and potential difficulties in funding operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.86B	7.99B	8.17B	8.76B	8.96B	7.55B
Gross Profit	2.22B	2.32B	2.27B	2.80B	3.08B	2.18B
EBITDA	-37.00M	261.00M	-200.00M	859.00M	1.25B	606.00M
Net Income	-385.00M	12.00M	-330.00M	342.00M	893.00M	323.00M
Balance Sheet
Total Assets	6.51B	6.75B	6.87B	7.91B	8.14B	7.04B
Cash, Cash Equivalents and Short-Term Investments	299.00M	401.00M	297.00M	536.00M	804.00M	1.68B
Total Debt	2.77B	2.78B	2.94B	3.23B	3.39B	3.19B
Total Liabilities	3.93B	3.84B	3.98B	4.61B	4.89B	4.26B
Stockholders Equity	2.58B	2.91B	2.89B	3.29B	3.24B	2.78B
Cash Flow
Free Cash Flow	6.00M	105.00M	-151.00M	-112.00M	457.00M	903.00M
Operating Cash Flow	221.00M	345.00M	91.00M	173.00M	666.00M	1.06B
Investing Cash Flow	-209.00M	-240.00M	-222.00M	-162.00M	-1.38B	-168.00M
Financing Cash Flow	-5.00M	-7.00M	-120.00M	-279.00M	-152.00M	-126.00M

Foot Locker Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FL, the sentiment is Neutral. The current price of 24.01 is below the 20-day moving average (MA) of 25.38, below the 50-day MA of 25.17, and above the 200-day MA of 20.64, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 35.43 is Neutral, neither overbought nor oversold. The STOCH value of 2.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FL.

Foot Locker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANF	78 Outperform	$4.54B	9.03	43.30%	―	9.34%	10.61%
BKE	78 Outperform	$3.03B	14.85	43.13%	6.58%	1.62%	-2.57%
SCVL	76 Outperform	$672.73M	10.84	9.69%	2.32%	-6.42%	-19.27%
GAP	75 Outperform	$8.83B	10.23	28.07%	2.65%	-0.05%	15.17%
AEO	75 Outperform	$3.26B	18.15	12.17%	2.66%	-2.73%	-16.71%
Sector *	61 Neutral	$17.95B	12.83	-3.20%	2.97%	1.18%	-14.28%
FL	49 Neutral	$2.29B	194.63	-13.84%	―	-3.58%	-4.20%

Foot Locker Corporate Events

Foot Locker Shareholders Favor Stock in Acquisition

On September 2, 2025, DICK’S Sporting Goods and Foot Locker announced the preliminary results of shareholder elections regarding the form of consideration for the acquisition of Foot Locker by DICK’S Sporting Goods. Approximately 92.6% of Foot Locker shareholders opted for stock consideration, while 1.2% chose cash. The merger is expected to close on September 8, 2025, pending customary conditions. This acquisition is anticipated to enhance DICK’S Sporting Goods’ market position and expand its reach in the footwear and apparel industry.

Foot Locker and DICK’S Merger Antitrust Period Ends

On August 26, 2025, DICK’S Sporting Goods and Foot Locker announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for their merger, with the deal expected to close on September 8, 2025. Foot Locker shareholders have until August 29, 2025, to elect their preferred form of merger consideration, either cash or shares of DICK’S Sporting Goods, with specific deadlines for participants in certain Foot Locker plans.

Foot Locker Shareholders Approve Merger with DICK’S

On August 22, 2025, Foot Locker held a special meeting of shareholders to vote on proposals related to a merger agreement with DICK’S Sporting Goods. The merger, which will see Foot Locker become a wholly-owned subsidiary of DICK’S, was approved by the shareholders, along with proposals regarding executive compensation related to the merger and potential meeting adjournment. The completion of the merger is still contingent upon regulatory approvals and customary closing conditions.

Foot Locker Awaits Shareholder Vote on Merger

On May 15, 2025, Foot Locker entered into a merger agreement with DICK’S Sporting Goods, where Foot Locker will become a wholly owned subsidiary of DICK’S. This merger is subject to shareholder approval, with a special meeting scheduled for August 22, 2025. Despite facing legal challenges from shareholders alleging misleading disclosures, Foot Locker is proceeding with supplemental disclosures to avoid delays and minimize litigation risks. The merger is seen as a strategic move to enhance Foot Locker’s market position, offering shareholders the option to receive cash or stock in DICK’S, which has a broader product portfolio and customer base.

Foot Locker Merger Review Delayed by FTC

On May 15, 2025, Foot Locker, Inc. entered into a Merger Agreement with DICK’S Sporting Goods, Inc. and its subsidiary, RJS Sub LLC. On July 23, 2025, DICK’S Sporting Goods withdrew its pre-merger Notification and Report Form to allow the Federal Trade Commission more time to review the merger under the Hart-Scott-Rodino Antitrust Improvements Act. The resubmission is planned for July 25, 2025, initiating a new 30-day waiting period. This step is a standard procedure for antitrust reviews, and both companies expect to complete the merger in the second half of 2025, pending regulatory approvals and shareholder agreement.

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.