Companies

Foot Locker makes profit in the fourth quarter despite lower sales

Mar 10, 2025 United States

The US-based sports retailer returned to profit in the fourth quarter of 2024. However, the company’s total sales still fell by 5.8% as compared to the same period of the previous year

“We delivered fourth quarter results above our previously revised expectations, as our investments and execution drove positive comparable sales and meaningful gross margin improvement compared to the prior year. Reflecting on 2024 overall, we made significant progress in elevating our in-store experience with our new Reimagined doors and store refresh program, enhancing our digital and mobile capabilities, expanding engagement with our FLX Rewards Program, and leaning into brand building through compelling campaigns and partnerships”, said Mary Dillon, President and Chief Executive Officer.

Fourth Quarter Results

In the fourth quarter of fiscal 2024, which ended on the 1^st of December, the company’s total sales decreased by 5.8% to 2.24 billion US dollars, as compared to 2.38 billion US dollars in the same period of 2023. Excluding foreign exchange rate fluctuations, total sales decreased by 4.6% year-over-year.

However, fourth quarter comparable sales increased by 2.6%, including global Foot Locker and Kids Foot Locker combined comparable sales growth of 3.6%, on a comparable basis to the same quarter of last year. Champs Sports also delivered its second consecutive quarter of comparable sales growth, with gains of 1.8%.

During this period, Foot Locker opened 7 new stores and closed 47 stores. In addition, 21 stores were remodelled or relocated, and 160 stores were updated with new design standards.

In the fourth quarter of the previous fiscal year, the company’s gross margin improved by 300 basis points from the same period a year ago, mainly thanks to improved merchandise margin recapture trends, despite elevated promotions in the marketplace.

Foot Locker reported a fourth quarter net income from continuing operations of 55 million US dollars, or earnings per share from continuing operations of 0.57 US dollars, as compared to a net loss of 389 million US dollars, or loss of 4.13 US dollars per share, in the same quarter of 2023.

On a non-GAAP basis, the company’s fourth quarter net income from continuing operations was 82 million US dollars, or earnings per share from continuing operations of 0.86 US dollars, as compared with net income of 36 million US dollars, or 0.38 US dollars per share, in the corresponding prior-year period.

2025 Outlook

For the 2025 financial year, the company expects sales to decline or grow between minus 1% and 1% and non-GAAP earnings per share to be between 1.35 and 1.65 US dollars.

Image Credits: cnbc.com

United States Companies Foot Locker, Inc. Quarter Results Results Sportswear