Foot Locker Q4 Earnings: EPS Beat, Sales Miss, Comps Up 2.6%, Margin Expansion And More

Specialty athletic retailer Foot Locker Inc FL shares are trading lower in premarket on Wednesday.

The company reported a fourth-quarter sales decline of 5.8% year-on-year to $2.243 billion, missing the analyst consensus estimate of $2.322 billion.

Comparable store sales increased 2.6% versus last year. Adjusted EPS of $0.86 beat the analyst consensus of $0.72.

The gross margin expanded 300 basis points, led by sequentially improved merchandise margin recapture trends relative to the third quarter of FY24 despite elevated promotions in the marketplace.

Selling, general and administrative expenses fell 6% Y/Y to $501 million. The operating margin was 3.6%, and operating income for the quarter jumped 148% to $82 million.

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The company held $401 million in cash and equivalents as of February 1. Merchandise inventories were $1.5 billion, a 1.1% Y/Y increase.

The operating cash flow for twelve months totaled $345 million. As of February 1, the company operated 2,410 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand.

“Our return to positive comparable sales growth, gross margin expansion, and positive free cash flow in fiscal 2024 serve as proof points that our Lace Up Plan is working,” said CEO Mary Dillon.

FY25 Outlook: Foot Locker sees FY25 comparable sales growth of 1% – 2.5%. FL expects sales change of -1.0% to +0.5%. Store count to be down 4%.

The company expects adjusted FY25 EPS of $1.35 – $1.65 versus the consensus of $1.77.

Price Action: FL shares are trading lower by 0.40% at $17.30 in premarket at last check Wednesday. 

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