Foot Locker Reports Q3 2024 Results and Updates Outlook

Footlocker ( (FL) ) has released its Q3 earnings. Here is a breakdown of the information Footlocker presented to its investors.

Foot Locker, Inc. is a leading global retailer specializing in athletic footwear and apparel, renowned for its presence in the sneaker culture and its collaboration with major brands such as Nike and Jordan. Despite achieving a 2.4% increase in comparable sales, Foot Locker’s third quarter of 2024 saw a 1.4% decline in total sales year-over-year, resulting in a net loss of $0.34 per share. The company reported a gross margin expansion by 230 basis points, supported by reduced markdowns, though it faced challenges due to a more promotional retail environment and softened consumer spending post the Back-to-School peak season. Key financial metrics include a decrease in inventory by 6.3% year-over-year and a non-GAAP earnings of $0.33 per share. Foot Locker has updated its 2024 outlook to reflect a cautious view on sales and earnings expectations, citing ongoing promotional pressures and fluctuating consumer demand. The company remains committed to its strategic initiatives such as its store refresh program and enhanced digital experience, aiming for sustainable shareholder value and targeting an EBIT margin of 8.5-9% by 2028.