Foot Locker (FL) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: N/A
• Average Volume (3M): 4.98M
• Price to Earnings (P/E): 101.1
• Beta (1Y): 1.54
• Revenue Growth: -2.20%
• EPS Growth: N/A
• Country: US
• Employees: 13,140
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Apparel - Retail
• EPS (TTM): 0.12
• Shares Outstanding: 94,954,370
• 10 Day Avg. Volume: 5,190,130
• 30 Day Avg. Volume: 4,983,825
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.19
• Price to Cash Flow (P/CF): -13.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.27
• Price Target Upside: 60.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

Foot Locker faces significant challenges in profitability and valuation, with a high P/E ratio and weak profitability metrics. While the earnings call provided some positive insights into sales growth and cost management, technical indicators show bearish momentum. Recent corporate appointments may strengthen strategic direction, but immediate financial improvements are necessary to instill investor confidence.

Positive Factors

Leadership and Management

Frank Bracken's promotion to President is seen as recognition of his great work.

Partnerships and Collaborations

The partnership between Nike and Footlocker, with initiatives like 'Home Court' and 'The Clinic' experiences, is seen as encouraging.

Negative Factors

Consumer Environment

The uncertain consumer environment is leading to lower-than-expected earnings guidance for the first half of the year, although a recovery is expected in the second half.

Financial Performance

Foot Locker missed the midpoint of initial annual guidance by significant margins in recent fiscal years.

Market Challenges

Significant headwinds are anticipated for Footlocker due to Nike's slow turnaround story.

Foot Locker Business Overview & Revenue Model

Company Description

Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer. The company engages in the retail of athletic footwear, apparel, accessories, equipment, and team licensed merchandise under the Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, atmos, WSS, Footaction, and Sidestep brand names. As of January 29, 2022, it operated 2,858 retail stores in 28 countries across the United States, Canada, Europe, Australia, New Zealand, and Asia; and 142 franchised Foot Locker stores located in the Middle East and Asia. The company also offers its products through various e-commerce sites and mobile apps. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York.

How the Company Makes Money

Foot Locker makes money primarily through the sale of athletic footwear and apparel. The company's revenue model is based on retail sales across its physical stores and online platforms. Key revenue streams include direct sales from its branded stores and e-commerce websites. Foot Locker also benefits from strategic partnerships with major sportswear brands, which allow them to offer exclusive products and limited-edition releases that drive consumer demand. Additionally, the company leverages its global presence to capitalize on emerging markets and expand its customer base, contributing to its overall earnings.

Foot Locker Financial Statement Overview

Summary

Foot Locker's financial statements indicate challenges in growth and profitability. The income statement shows declining margins and revenues, with a net profit margin of 0.15%. The balance sheet is stable with a reasonable debt-to-equity ratio of 0.96, but ROE is low. Cash flow management has improved, with free cash flow turning positive, but profitability remains a concern. Overall, financial performance is moderate, requiring improvement in sales growth and operational efficiency.

Income Statement

Foot Locker's income statement reveals a concerning trend in revenue and profitability. The gross profit margin is 29.07% for the latest fiscal year, but net profit margin has fallen sharply to 0.15% due to a significant decrease in net income. Revenue has declined over the past two years, indicating challenges in sales growth. The EBIT margin has decreased to 1.29%, reflecting pressure on operational efficiency. EBITDA margin is 4.86%, also showing a decline from previous years. These trends suggest weakening profitability and growth prospects.

Balance Sheet

The balance sheet indicates a balanced financial structure with a debt-to-equity ratio of 0.96, which is reasonable for the retail industry. Return on Equity (ROE) is low at 0.41%, reflecting reduced profitability. The equity ratio stands at 43.11%, showing a stable base of equity financing. Overall, the balance sheet suggests moderate financial stability but highlights the need to improve returns on equity.

Cash Flow

Foot Locker's cash flow statement shows improvement in free cash flow, which grew from negative to $105 million, indicating better cash management. The operating cash flow to net income ratio is 28.75, reflecting strong cash flow generation despite low net income. The free cash flow to net income ratio is 8.75, suggesting that while cash flow is improving, profitability needs attention. Overall, the cash flow situation has improved but remains a concern due to low profitability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
7.99B	8.17B	8.76B	8.96B	7.55B
	Gross Profit
2.32B	2.27B	2.80B	3.08B	2.18B
	EBIT
103.00M	142.00M	581.00M	1.43B	537.00M
	EBITDA
388.00M	-200.00M	859.00M	1.25B	606.00M
	Net Income Common Stockholders
12.00M	-330.00M	342.00M	893.00M	323.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
401.00M	297.00M	536.00M	804.00M	1.68B
	Total Assets
6.75B	6.87B	7.91B	8.14B	7.04B
	Total Debt
2.78B	2.94B	3.23B	3.39B	3.19B
	Net Debt
2.38B	2.65B	2.69B	2.59B	1.51B
	Total Liabilities
3.84B	3.98B	4.61B	4.89B	4.26B
	Stockholders Equity
2.91B	2.89B	3.29B	3.24B	2.78B
Cash Flow		Free Cash Flow
105.00M	-151.00M	-112.00M	457.00M	903.00M
	Operating Cash Flow
345.00M	91.00M	173.00M	666.00M	1.06B
	Investing Cash Flow
-240.00M	-222.00M	-162.00M	-1.38B	-168.00M
	Financing Cash Flow
-7.00M	-120.00M	-279.00M	-152.00M	-126.00M

Foot Locker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FL, the sentiment is Negative. The current price of 12.64 is below the 20-day moving average (MA) of 15.34, below the 50-day MA of 17.46, and below the 200-day MA of 23.18, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 27.27 is Positive, neither overbought nor oversold. The STOCH value of 8.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FL.

Foot Locker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	77 Outperform	$1.96B	7.37	24.17%	―	-2.23%	-42.94%
SHOO	73 Outperform	$1.74B	10.24	20.20%	3.48%	15.03%	1.51%
AEO	67 Neutral	$1.89B	6.52	18.80%	4.57%	1.27%	96.32%
SPB	67 Neutral	$1.65B	15.37	4.91%	2.85%	2.56%	-91.05%
Sector *	59 Neutral	$11.20B	10.09	-1.41%	3.96%	1.31%	-16.95%
KSS	57 Neutral	$798.19M	7.37	2.83%	22.66%	-7.18%	-65.92%
FL	55 Neutral	$1.20B	101.06	0.62%	―	-2.20%	―

Foot Locker Corporate Events

Foot Locker Appoints Franklin Bracken as President

On March 25, 2025, Foot Locker, Inc. announced the appointment of Franklin R. Bracken as President, effective March 26, 2025. Bracken, who has been with the company since 2010, will continue to report to CEO Mary Dillon and will work to accelerate the company’s Lace Up Plan, focusing on enhancing the omni-retail experience and creating long-term shareholder value. Bracken’s extensive experience in brand management and retail operations positions him to further strengthen Foot Locker’s market position and drive meaningful business results.

Foot Locker Reports Q4 2024 Financial Results

Foot Locker, Inc. reported its financial results for the fourth quarter of 2024, showing a 5.8% decrease in total sales year-over-year, but a 2.6% increase in comparable sales. The company achieved a gross margin expansion of 300 basis points and a significant improvement in net income from continuing operations compared to the previous year. Foot Locker completed 160 store refreshes in the quarter and issued a cautious outlook for 2025, anticipating continued consumer and promotional pressures. The company plans to focus on customer-facing investments and brand partnerships to drive growth and shareholder value.

Foot Locker Expands Board with New Appointments

On January 12, 2025, Foot Locker’s Board of Directors expanded to 11 members and elected Sonia Syngal and John Venhuizen. Syngal, with extensive experience from Gap, Inc., and Venhuizen, from Ace Hardware, were appointed to various board committees. The company emphasized the significance of their appointments for enhancing strategic initiatives and delivering shareholder value. Additionally, Guillermo G. Marmol will not stand for reelection at the 2025 Annual Meeting, aligning with the company’s retirement policy.