Earnings Per Share (EPS) of $0.86, surpassing the estimated $0.73.
Revenue of $2.24 billion, slightly below the expected $2.32 billion.
Disappointing fiscal 2026 earnings guidance, causing stock fluctuations.
Foot Locker, Inc. (NYSE: FL) is a leading global retailer specializing in athletic footwear and apparel. The company operates various store formats, including Foot Locker, Kids Foot Locker, and Champs Sports, among others. Foot Locker competes with other major retailers like Nike and Adidas, which also have a strong presence in the athletic retail market.
On March 5, 2025, Foot Locker reported earnings per share (EPS) of $0.86, surpassing the estimated $0.73. However, the company generated revenue of $2.24 billion, slightly below the expected $2.32 billion. Despite the positive EPS, the revenue shortfall has raised concerns among investors, especially given the company’s recent fiscal 2026 earnings guidance that fell short of expectations.
Foot Locker’s stock has experienced fluctuations due to the disappointing fiscal 2026 earnings guidance, as highlighted by Barrons. The company’s sales performance and future earnings outlook have been softer than anticipated, contributing to the stock’s volatility. The holiday season results were mixed, and the company warned that profits might be under pressure in the coming year.
The company’s performance is also affected by its largest brand partner, Nike, which is using discounts to clear out stale inventory. This strategy indicates ongoing challenges within the sneaker industry, suggesting potential difficulties for both Foot Locker and Nike. Despite these challenges, Foot Locker achieved a gross margin expansion of 300 basis points compared to the previous year.
Foot Locker completed 160 store refreshes during the quarter, bringing the total to over 400 for the year. The company has focused on enhancing the in-store experience, improving digital capabilities, and expanding customer engagement through the FLX Rewards Program. Foot Locker maintains a current ratio of 1.67, indicating a good level of liquidity to cover short-term liabilities.
