Foot Locker Q4 2024 Earnings Report
Key Takeaways
Foot Locker's Q4 2024 results showed a 5.8% decline in total sales but a 2.6% increase in comparable sales, indicating resilience in the core business. Gross margin expanded by 300 basis points, driven by improved merchandise margins. GAAP EPS stood at $0.57, while non-GAAP EPS was $0.86. The company also refreshed 160 stores in the quarter, contributing to over 400 store refreshes in 2024. Looking ahead, Foot Locker remains focused on strategic investments and cost control amid an uncertain retail environment.
Total sales declined 5.8% YoY to $2.24 billion, with comparable sales up 2.6%.
GAAP EPS was $0.57, and non-GAAP EPS was $0.86.
Gross margin improved by 300 basis points compared to Q4 2023.
Foot Locker refreshed 160 stores in Q4, totaling over 400 for the year.
Foot Locker
Foot Locker
Forward Guidance
Foot Locker expects a sales change between -1.0% and +0.5% for FY 2025, with comparable sales growth of 1.0% to 2.5%. The company remains cautious about macroeconomic conditions but is focused on strategic store investments and operational efficiencies.
Positive Outlook
- Comparable sales expected to grow between 1.0% and 2.5% in FY 2025.
- Gross margin expected to improve to 29.3%-29.7%.
- Continued investment in store refreshes and customer experience.
- Positive impact from FLX Rewards Program and digital engagement.
- Strong partnerships with key brands, leveraging promotional events.
Challenges Ahead
- Total sales expected to be flat or slightly negative in FY 2025.
- Consumer spending remains uncertain, especially in H1 2025.
- Ongoing category promotional pressures may affect margins.
- Store count expected to decline by 4% due to strategic closures.
- Licensing revenue projected to remain low at approximately $24 million.