With Foot Locker Inc. announcing preliminary first-quarter results on May 15, the official tally on earnings Thursday was no surprise.
The sneaker retailer said at the time that it inked a deal to be acquired by Dick’s Sporting Goods for $2.4 billion, or $24 a share. The deal is expected to close later this year, and some on Wall Street concluded the combined entity will be good for its vendor base. Dick’s reported first quarter results on Wednesday, and its CEO Lauren Hobart said Nike is among the vendors that that “continues to perform really, really well for us.”
Related Stories
“We are continuing to execute our Lace Up Plan strategies as we look forward to the successful completion of our transaction with DICK’S Sporting Goods,” Foot Locker’s CEO Mary Dillon said in a statement. She noted that softer traffic trends globally impacted the quarterly results. “As we have executed these and other initiatives to further advance our strategy, our teams have also remained nimble to navigate the uncertain macroeconomic environment, including managing our promotional levels, inventories, and expenses and remaining disciplined with our cash flows,” she said.
You May Also Like
What’s new in the earnings report is that the company opened 9 new stores and closed 56 locations, including stores in South Korea, Denmark, Norway, Sweden, Greece and Romania. It also remodeled or relocated 11 doors and refreshed 69 locates to it updated store design. At the end of the quarter, Foot Locker operated 2,363 stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. It also has 236 licensed stores operating in the Middle East, Europe and Asia. The retailer said that the licensed operations include the Greece and Romania business that was sold to its license partner in April 2025.
For the first quarter ended May 3, the net loss was $363 million, or $3.81 cents a diluted share, versus net income of $8 million, or 9 cents, in the year-ago period. On an adjusted basis, the loss was 7 cents a share. Total revenue fell 4.5 percent to $1.79 billion from $1.88 billion. Total revenue included a 4.6 percent decline in sales to $1.79 billion from $1.87 billion.
The company said that comparable sales fell by 2.6 percent. By business segment, comparable sales in the North American region slipped by 0.5 percent, and was down 8.5 percent at its international businesses, led by softness in Foot Locker Europe.
Also impacting results was a decline in gross margin by 40 basis points versus year-ago levels, with merchandise margins down by 10 basis points.
Because of the pending acquisition, the retailer’s management did not hold a conference call to discuss earnings results.