Foot Locker Experiences Sales Decline Amidst Pending Dick's Acquisition

Foot Locker experienced a 4.5% decline in total sales for Q1 FY25 after accounting for foreign exchange, with comparable sales dropping by 2.6%. This fall is attributed to both a 0.5% decrease in North America and an 8.5% reduction internationally, notably affecting Foot Locker Europe. Amidst these results, Dick's Sporting Goods confirmed a $2.4 billion acquisition of Foot Locker. During the same period, Foot Locker saw a net loss increase to $363 million, contrasting last year's $8 million net income. Adjusted non-GAAP net loss was $6 million. The company's FY25 Q1 losses reflect non-cash impairment charges, adjustments for deferred tax assets, and costs totaling $276 million. The gross margin fell by 40 basis points, contributing to a 100 basis point rise in SG&A expenses. Foot Locker maintains its strategic initiatives, including the Lace Up Plan strategies, Reimagined and Refresh programs, and FLX, while also strategically transitioning Greece and Romania operations to licensed partners.