Latest news with #Reimagined
Daily Tribune
03-06-2025
- Business
- Daily Tribune
Finance leaders reimagine Global Investment Future
TDT | Manama Global finance took on a broader meaning at the 'Investment Reimagined' event hosted by the Bahrain Chapter of the Institute of Chartered Accountants of India (ICAI) on Wednesday, as over 150 finance professionals and industry leaders came together to explore evolving definitions of investment in today's fast-changing world. Beyond capital Held at Wyndham Grand, the gathering delved into new-age investment thinking - where value isn't confined to portfolios and assets, but also extends to knowledge, people, and innovation. Speakers challenged conventional models and offered forward-thinking strategies to navigate uncertainty and technological disruption in the global economy. The event was powered by Care PMS, with distinguished speakers Arpit Shah and Vishal Shah leading the dialogue. Their insights explored how finance professionals must adapt to emerging opportunities by reimagining investment through a more inclusive and strategic lens. Celebrating potential A key highlight of the evening was the Award Ceremony recognising high-performing commerce students from schools across Bahrain. ICAI Bahrain Chapter described the gesture as an investment in the Kingdom's intellectual capital, honouring future leaders in the field of finance. 'Recognising young academic talent is as important as market performance,' said an ICAI spokesperson at the event. 'These students represent the future of the finance profession, and we are proud to acknowledge their achievements.' Support and partnerships The event was made possible through the continued support of ICAI Bahrain Chapter's annual sponsors, SSPL and Cube Innovators. The organisers also extended gratitude to attendees, speakers, and volunteers for making the event a success. By blending technical insights with community recognition, the event reaffirmed ICAI Bahrain's role in steering professional conversations while celebrating educational excellence.
Yahoo
29-05-2025
- Business
- Yahoo
FL Q1 Loss Meets Estimates, Comparable Sales Decline 2.6% Y/Y
Foot Locker, Inc. FL has posted first-quarter fiscal 2025 results, with the top line lagging the Zacks Consensus Estimate and the bottom line meeting the same. Both metrics declined year over year. Comparable sales declined year over year in the quarter under company continues to execute its Lace Up Plan strategies as it prepares for the completion of the DICK'S Sporting Goods transaction. Softer global traffic trends impacted first-quarter performance. During the quarter, focus remained on rolling out the Reimagined and Refresh programs, enhancing digital offerings, strengthening customer engagement through the FLX program and leveraging brand partnerships. The company also stayed agile in managing promotions, inventories, expenses and cash flow amid an uncertain macroeconomic environment. Foot Locker, Inc. price-consensus-eps-surprise-chart | Foot Locker, Inc. Quote The athletic shoes and apparel retailer posted an adjusted loss of seven cents per share. The figure significantly decreased from adjusted earnings of 22 cents in the prior-year quarter. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Total revenues of $1,788 million decreased 4.6% from the year-ago period. Excluding the impacts of foreign-currency fluctuations, total revenues decreased 4.5%. Revenues missed the Zacks Consensus Estimate of $1,826 million. Comparable sales declined 2.6% year over year, including a 0.5% decrease in the North American region. In the company's international operations, comparable sales dropped 8.5%, primarily due to weakness in Foot Locker Europe. Gross profit was $514 million, down 5.5% year over year. FL's gross margin rate increased 40 basis points (bps) year over year to 28.7%. Merchandise margins fell 10 bps, while occupancy costs, as a percentage of sales, rose 30 bps year over year. We expected the gross margin to be 28.3% in the quarter under general and administrative (SG&A) costs declined 0.7% year over year to $458 million. This metric, as a percentage of sales, deleveraged 100 basis points compared with the prior-year period, due to the impact of lower sales and investments in technology that outweighed the benefits of the cost optimization program and continued expense discipline. We anticipated SG&A expenses, as a percentage of sales, to deleverage 90 bps. In the first quarter, the company opened nine new stores and closed 56 stores, including locations in South Korea, Denmark, Norway, Sweden, Greece and Romania. FL also remodeled or relocated 11 stores and updated 69 stores to reflect its revised design standards, which feature key elements of the current brand of May 3, 2025, the company operated 2,363 stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. Additionally, 236 licensed stores were operating in the Middle East, Europe and Asia. These licensed operations include the Greece and Romania businesses, which were sold to the company's license partner in April announced on May 15, 2025, Foot Locker and DICK'S Sporting Goods have finalized a definitive merger agreement, under which DKS will acquire Foot Locker. FL Stock Past Three-Month Performance Image Source: Zacks Investment Research This Zacks Rank #4 (Sell) company ended the fiscal first quarter with cash and cash equivalents of $343 million. Long-term debt and obligations under finance leases amounted to $440 million. Shareholders' equity totaled $2.61 billion. As of May 3, 2025, merchandise inventories were $1.67 billion, up 0.4% from the year-earlier the past three months, FL shares have gained 33.7% compared with the industry's 4.9% growth. Some better-ranked stocks are Urban Outfitters Inc. URBN, Genesco Inc. GCO and Allbirds Inc. Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for URBN's fiscal 2025 earnings and sales implies growth of 20.9% and 8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%.Genesco is a Nashville-based specialty retail and branded company that sells footwear and accessories in retail stores. It currently has a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for GCO's fiscal 2025 earnings and sales implies growth of 62.8% and 0.6%, respectively, from the year-ago actuals. Genesco delivered a trailing four-quarter average earnings surprise of 37.2%.Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at Zacks Consensus Estimate for BIRD's current financial-year's earnings implies growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Foot Locker, Inc. (FL) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Allbirds, Inc. (BIRD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-05-2025
- Business
- Yahoo
FOOT LOCKER, INC. REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
• Total Sales Down 4.6% Year-over-Year and Comparable Sales Down 2.6%• GAAP EPS Loss of $3.81 and Non-GAAP EPS Loss of $0.07• Continued Store Modernization Efforts with 69 Refreshes• Launched New Champs Sports and Kids Foot Locker Mobile Apps NEW YORK, May 29, 2025 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL) today reported financial results for its first quarter ended May 3, 2025. Mary Dillon, Chief Executive Officer said, "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. As we noted at the time we reported preliminary first quarter results, we experienced softer traffic trends globally that impacted our performance. During the quarter, we remained focused on the rollout of our Reimagined and Refresh programs to elevate our in-store experience, enhancing our digital offerings, deepening customer engagement through our FLX program and leveraging our strong brand partnerships to generate excitement for our customers. 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." First Quarter Results Total sales were down 4.6%, to $1,788 million, as compared with sales of $1,874 million in the first quarter of 2024. Excluding the effect of foreign exchange rate fluctuations, total sales for the first quarter decreased by 4.5%. Comparable sales decreased by 2.6%, with comparable sales in the North American region decreasing by 0.5%. Comparable sales in the Company's international businesses decreased by 8.5%, led by softness in Foot Locker Europe. Please refer to the Sales by Banner table below for detailed sales performance by banner and region. Gross margin decreased by 40 basis points as compared with the prior-year period. Merchandise margins decreased by 10 basis points, while occupancy as a percentage of sales increased by 30 basis points as compared to the prior-year period. SG&A as a percentage of sales increased by 100 basis points as compared with the prior-year period, due to underlying deleverage on the sales decline and investments in technology which more than offset the cost optimization program and ongoing expense discipline. Compared to the prior year, SG&A dollars were down 0.7%. Net loss was $363 million, as compared with net income of $8 million in the prior-year period. On a non-GAAP basis, net loss was $6 million for the first quarter, as compared with net income of $21 million in the corresponding prior-year period. First quarter loss per share was $3.81, as compared with earnings per share of $0.09 in the first quarter of 2024. Non-GAAP loss was $0.07 per share in the first quarter, as compared with non-GAAP earnings per share of $0.22 in the corresponding prior-year period. Non-GAAP net loss and net loss per share exclude non-cash impairment charges totaling $276 million and primarily reflect a $140 million charge related to a tradename and a goodwill impairment charge of $110 million. Additionally, the Company recorded a full valuation allowance on its deferred tax assets and deferred tax costs related to certain of the Company's European business totaling $124 million, which is excluded from non-GAAP the tables below for the reconciliation of Non-GAAP measures. Balance Sheet At quarter-end, the Company had cash and cash equivalents of $343 million, and total debt was $445 million. As of May 3, 2025, the Company's merchandise inventories were $1,665 million, 0.4% higher than at the end of the first quarter last year. Excluding the effect of foreign currency fluctuations, merchandise inventories decreased by 0.7% as compared with the first quarter of last year. Store Base Update During the first quarter, the Company opened 9 new stores and closed 56 stores, including its stores that operated in South Korea, Denmark, Norway, Sweden, Greece, and Romania. Also during the quarter, the Company remodeled or relocated 11 stores and refreshed 69 stores to our updated design standards, which incorporate key elements of our current brand design specifications. As of May 3, 2025, the Company operated 2,363 stores in 20 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 236 licensed stores were operating in the Middle East, Europe, and Asia. Our licensed operations include the Greece and Romania business that was sold to our license partner in April 2025. Agreement to be Acquired by DICK'S As previously announced on May 15, 2025, Foot Locker and DICK'S Sporting Goods have entered into a definitive merger agreement under which DICK'S will acquire Foot Locker. In light of the pending transaction with DICK'S, Foot Locker will not be holding its previously scheduled conference call to discuss its first quarter 2025 results and will not be providing or updating previously issued financial guidance. Disclosure Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, financial objectives, dividend payments, stock repurchases, financial outlook, and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. Factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements herein include, but are not limited to, the occurrence of any event, change or other circumstance that could give rise to the right of us or DICK'S Sporting Goods, Inc. ("DICK'S") to terminate the Agreement and Plan of Merger by and among us, DICK'S and a wholly owned subsidiary of DICK'S ("Merger Sub") pursuant to which, among other things, Merger Sub would be merged with and into us (the "Transaction"); the outcome of any legal proceedings that may be instituted against us, including with respect to the Transaction; the possibility that the Transaction does not close when expected or at all because required regulatory or shareholder approvals or other conditions to closing are not received or satisfied on a timely basis or at all; reputational risk and potential adverse reactions of our customers, employees or other business partners; the diversion of our management's attention and time from ongoing business operations and opportunities due to the Transaction; and any other factors set forth in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended February 1, 2025, filed on March 27, 2025. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events, or otherwise. Foot Locker, Inc. Condensed Consolidated Statements of Operations (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts)First Quarter2025 2024Sales$ 1,788 $ 1,874Other revenue 65Total revenue 1,7941,879 Cost of sales 1,2801,335Selling, general and administrative expenses 458461Depreciation and amortization 5151Impairment and other 27614(Loss) income from operations (271)18 Interest expense, net (2)(1)Other income (expense), net 3(4)(Loss) income before income taxes (270)13Income tax expense 935Net (loss) income$ (363) $ 8 Diluted (loss) earnings per share$ (3.81) $ 0.09Weighted-average diluted shares outstanding 95.395.3Non-GAAP Financial Measures In addition to reporting the Company's financial results reported in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP financial measures that will be presented will exclude (i) gains or losses related to our minority investments, (ii) impairments and other, and (iii) certain tax matters that we believe are nonrecurring or unusual in nature. Certain financial measures are identified as non-GAAP, such as sales changes excluding foreign currency fluctuations, adjusted income before income taxes, adjusted net income, and adjusted diluted earnings per share. We present certain amounts as excluding the effects of foreign currency fluctuations, which are also considered non-GAAP measures. Where amounts are expressed as excluding the effects of foreign currency fluctuations, such changes are determined by translating all amounts in both years using the prior-year average foreign exchange rates. Presenting amounts on a constant currency basis is useful to investors because it enables them to better understand the changes in our business that are not related to currency movements. These non-GAAP measures are presented because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core business or affect comparability. In addition, these non-GAAP measures are useful in assessing our progress in achieving our long-term financial objectives and are consistent with how executive compensation is determined. Foot Locker, Inc. Non-GAAP Reconciliation (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts) We estimate the tax effect of all non-GAAP adjustments by applying a marginal tax rate to each item. The income tax items represent the discrete amount that affected the period. The non-GAAP financial information is provided in addition, and not as an alternative, to our reported results prepared in accordance with GAAP. The various non-GAAP adjustments are summarized in the tables below. Reconciliation of GAAP to non-GAAP results:First Quarter2025 2024Pre-tax (loss) income: (Loss) income before income taxes$ (270) $ 13Pre-tax adjustments excluded from GAAP:Impairment and other (1) 27614Other income / expense (2) (4)2Adjusted income before income taxes (non-GAAP)$ 2 $ 29 After-tax (loss) income: Net (loss) income$ (363) $ 8After-tax adjustments excluded from GAAP:Impairment and other, net of income tax benefit of $39 and $3 million, respectively (1) 23711Other income / expense, net of income tax expense of $- and $- million, respectively (2) (4)2Tax valuation allowance and deferred tax cost write off (3) 124—Adjusted net (loss) income (non-GAAP)$ (6) $ 21First Quarter2025 2024Earnings per share: Diluted (loss) earnings per share$ (3.81) $ 0.09Diluted per share amounts excluded from GAAP: Impairment and other (1) 2.480.11Other income / expense (2) (0.05)0.02Tax valuation allowance and deferred tax cost write off (3) 1.31—Adjusted diluted (loss) earnings per share (non-GAAP)$ (0.07) $ 0.22 Notes on Non-GAAP Adjustments:(1) Included in the first quarter of 2025 impairment and other caption were non-cash impairment charges of $140 million to write down the WSS tradename and $110 million of goodwill, as a result of a triggering event due to a reduction in the Company's stock price and resulting market capitalization, coupled with general macroeconomic factors. Additionally, the Company recorded $15 million in non-cash impairment charges of long-lived assets and right-of-use assets. In connection with the previously announced global headquarters relocation and the shutdown of the businesses in South Korea, Denmark, Norway, and Sweden, we recorded accelerated tenancy and lease termination charges of $8 million. The Company has closed all stores operating in those regions as it focuses on improving the overall results of its international operations. Finally, the Company recorded $3 million of reorganization costs primarily related to the announced closure and relocation of the Company's global headquarters and the shutdown the first quarter of 2024, impairment and other included a loss accrual for legal claims of $7 million and a $7 million impairment of long-lived assets and right-of-use assets related to the Company's decision to no longer operate, and to sublease, one of its larger underperforming stores in Europe. Foot Locker, Inc. Non-GAAP Reconciliation (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts)Notes on Non-GAAP Adjustments (continued):(2) For the first quarter of 2025, other expense / income included a $5 million gain on the sale of the Greece and Romania businesses, partially offset by $1 million of our share of losses related to equity method the first quarter of 2024, other income / expense consisted of $2 million of our share of losses related to equity method investments. (3) In the first quarter of 2025, it was determined that due to recent weakness in market conditions, the ability to utilize the entirety of our European deferred tax asset was less likely than prior periods. Accordingly, the Company recorded a $117 million valuation allowance on all the deferred tax assets related to net operating loss carryforwards and deferred interest deductions related to certain of the Company's European business. The Company will continue to monitor the recoverability of deferred tax assets on a quarterly basis. Additionally, in connection with this assessment, the Company wrote off certain deferred tax costs of $7 million. Foot Locker, Inc. Sales by Banner (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions)First Quarter2025 2024 ConstantCurrencies Comparable SalesFoot Locker$ 735 $ 759(2.6) % (0.9) % Champs Sports 261267(2.2)0.5Kids Foot Locker 183183—3.4WSS 160160—(4.6)North America 1,3391,369(1.9)(0.5)EMEA 346394(13.2)(10.2)Foot Locker 6672(4.2)(0.8)atmos 3739(7.7)(6.4)Asia Pacific 103111(5.4)(2.8)Total$ 1,788 $ 1,874(4.5) % (2.6) % Foot Locker, Inc. Condensed Consolidated Balance Sheets (unaudited) (In millions)May 3, May 4,2025 2024ASSETSCurrent assets: Cash and cash equivalents$ 343 $ 282Merchandise inventories 1,6651,659Other current assets 359414 2,3672,355Property and equipment, net 908910Operating lease right-of-use assets 2,0992,175Deferred taxes 41114Goodwill 661760Other intangible assets, net 230392Minority investments 115150Other assets 13791$ 6,558 $ 6,947 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities: Accounts payable$ 504 $ 515Accrued and other liabilities 433389Current portion of long-term debt and obligations under finance leases 55Current portion of lease obligations 499496 1,4411,405Long-term debt and obligations under finance leases 440441Long-term lease obligations 1,8901,984Other liabilities 179231Total liabilities 3,9504,061Total shareholders' equity 2,6082,886$ 6,558 $ 6,947 Foot Locker, Inc. Condensed Consolidated Statement of Cash Flows (unaudited) (In millions)Thirteen weeks endedMay 3, May 4,($ in millions)2025 2024From operating activities: Net (loss) income$ (363) $ 8Adjustments to reconcile net (loss) income to net cash from operating activities: Tradename intangible asset impairment 140—Impairment of goodwill 110—Deferred income taxes 69(5)Depreciation and amortization 5151Impairment of long-lived assets and right-of-use assets 237Share-based compensation expense 66Gain on sales of businesses (5)—Change in assets and liabilities: Merchandise inventories (110)(158)Accounts payable 118151Accrued and other liabilities —(3)Pension contribution (20)—Other, net (22)1Net cash (used in) provided by operating activities (3)58From investing activities: Capital expenditures (58)(76)Proceeds from sales of businesses 6—Net cash used in investing activities (52)(76)From financing activities: Shares of common stock repurchased to satisfy tax withholding obligations (2)(4)Payment of obligations under finance leases (2)(2)Proceeds from exercise of stock options —5Net cash used in financing activities (4)(1)Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash 42Net change in cash, cash equivalents, and restricted cash (55)(17)Cash, cash equivalents, and restricted cash at beginning of year 430334Cash, cash equivalents, and restricted cash at end of period$ 375 $ 317 Foot Locker, Count and Square Footage (unaudited)Store activity is as follows:February 1, May 3, Relocations/2025 Opened Closed 2025 RemodelsFoot Locker U.S. 677—1266520Foot Locker Canada 84—3811Champs Sports 383163781Kids Foot Locker 369—53642WSS 15111151—Footaction 1——1—North America 1,6652271,64024EMEA (1) 60871859739Foot Locker Pacific 96——9616Foot Locker Asia 11—11——atmos 30——301Asia Pacific 137—1112617Total 2,4109562,36380 Selling and gross square footage are as follows:May 4, 2024 May 3, 2025(in thousands)Selling Gross Selling GrossFoot Locker U.S. 2,3864,0492,3053,902Foot Locker Canada 257423254416Champs Sports 1,5082,3731,4432,274Kids Foot Locker 7761,2957451,258WSS 1,4581,7571,5781,900Footaction 3636North America 6,3889,9036,3289,756EMEA (1) 1,2102,4591,1592,378Foot Locker Pacific 246371254381Foot Locker Asia 5298--atmos 28482847Asia Pacific 326517282428Total 7,92412,8797,76912,562(1) Includes 7 Kids Foot Locker stores, and the related square footage, operating in Europe for both February 1, 2025 and May 3, 2025. Contacts: Kate Fitzsimons Investor Relations ir@ Parrish Joele Frank, Wilkinson Brimmer Katcher lparrish@ mediarelations@ View original content to download multimedia: SOURCE Foot Locker IR
Miami Herald
17-05-2025
- Business
- Miami Herald
Popular sneaker retailer closing over 100 locations
Sneakers have been having an extended moment. Sneakerhead culture has moved into the mainstream, and it's no longer uncommon to see a man wearing a suit along with Jordans. That Nike-owned brand has sort of created its own fashion, along with a different set of rules. In addition, we're at an unprecedented time for new sneaker brands. Yes, Nike dominates, but new players like Hoka and NoBull have found markets and long-standing companies including Reebok, Adidas, Puma, and Brooks have found their own markets to serve. Related: Aldi acquires multiple locations from bankrupt retail chain The sneaker retail space, though, has been very challenging. Nike has worked to move some of its business to a direct-to-consumer model. That has included some limited-edition, high-end "sneaker drops," which previously would have driven customers to shoe stores. In some cases, Nike has simply cut its offerings to some retailers. In others, it dropped some partners entirely. Nike has, however, learned that direct-to-consumer is a very challenging model. Don't miss the move: Subscribe to TheStreet's free daily newsletter Because of that, it has stepped up its relationship with its most important partners, which includes Foot Locker (FL) as well as Dick's Sporting Goods (DKS) , which just agreed to acquire the sneaker giant. As the deal closes, however, Foot Locker already has a plan to shut down over 100 locations. Foot locker has become the rare chain that's so big it has to close stores every few years. That's usually due to shifting populations and changes in demand. Before its deal to be purchased by Dick's Sporting Goods became public, the company had shared plans to fix its retail portfolio. "Overall, our store count is expected to be down approximately 4% in 2025, with square footage down approximately 2%. We expect to add roughly 20 new stores in a year and to close approximately 110," CFO Mike Baughn shared in the company's fourth quarter earnings release. The chain closed 400 stores in 2024. It has plans to update hundreds of locations under a two-pronged plan. "Reimagine" is a more thorough overhaul that requires the store to be closed for longer, while "Refresh" is quick and only involves a brief shutdown. "First, in stores, we're upgrading our customers' experience through both our new Reimagine concept and extensive Store Refresh program, both of which remain an important part of our plans looking now have eight Reimagined doors open across North America, Europe, and Asia," CEO Mary Dillon shared. More Retail News: Customers need to know these Rite Aid bankruptcy datesDisney World raises beloved event price to highest-ever levelMcDonald's makes massive change for the summer season She's happy with the initial results. "The response to our Reimagined doors has been extremely positive from our customers, our brand partners, and our landlords, and we're accelerating our focus on Reimagined as part of our efforts in 2025," she added. After the Dick's sale goes through, Foot Locker is expected to be run as an independent company. That means its remodel plans should move forward. "In 2024, we also completed over 400 Refreshes, which elevated and improved consistency across our global Foot Locker and Kids Foot Locker doors, and we're planning for roughly 300 more Refreshes in 2025," Dillon shared. The improved experience is not just for brick-and-mortar locations. "In digital, we made meaningful advancements in the customer experience, including the rollout of our new mobile app in the U.S. in November, and it increased our digital penetration 100 basis points to 18.2%," she added. Foot Locker also made a key decision about not pursuing certain markets. Related: Trader Joe's making huge mistake not copying Walmart, Target "In 2024, we announced our plans to exit international markets, including South Korea and Norway, Sweden, and Denmark. We also made the decision to convert select markets in Europe to a license model," Dillon said. Foot Locker has entered into a definitive merger agreement under which Dick's will acquire the sneaker retailer and its associated brands. This transaction implies an equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
16-05-2025
- Business
- Yahoo
Foot Locker sees $363m Q1 2025 loss amid pending $2.4bn Dick's deal
The company, which agreed to a $2.4bn acquisition with Dick's Sporting Goods, attributed the weak performance to 'softer traffic trends globally'. Foot Locker CEO Mary Dillon said: "Despite making ongoing progress with our Lace Up Plan, our preliminary first quarter results are below our expectations as we experienced softer traffic trends globally. We continued to manage our promotional levels and maintain inventory and expense discipline, and we have taken actionable steps to advance these efforts and remain nimble and well positioned in an uncertain macroeconomic backdrop.' Key figures from preliminary first quarter 2025 results Foot Locker's comparable sales saw a 2.6% decrease from the previous year's figures. The North America region specifically experienced a 0.5% decline in comparable sales. The anticipated loss per share for the quarter stands at $3.81, which is a significant shift from earnings per share of $0.09 during the first quarter of 2024. On a non-GAAP basis, the expected loss per share is $0.07 for the quarter, down from non-GAAP earnings per share of $0.22 in the corresponding period last year. The non-GAAP net loss and per-share figures do not include non-cash impairment charges totalling $276m. These charges consist mainly of a $140m tradename charge and a goodwill impairment charge of $110m. Furthermore, there is a recorded full valuation allowance on deferred tax assets and related costs totalling $124m concerning the company's European business; these are also excluded from non-GAAP results. Dillon further stated: "In the first quarter, we continued to elevate our in-store experience through our Reimagined and Refresh programs and enhanced our digital offerings, including our new Champs Sports and Kids Foot Locker mobile apps. We have remained focused on increasing engagement through our FLX programme and leveraging our strong brand partnerships to generate excitement for our customers." The company reported net worldwide sales of $7.97bn and net income of $12m for fiscal year 2024. Foot Locker will refrain from issuing new financial forecasts or revising any prior projections due to the deal with Dick's. "Foot Locker sees $363m Q1 2025 loss amid pending $2.4bn Dick's deal" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
