❖ Foot Locker, Inc. FOURTH QUARTER 2024 EARNINGS RESULTS MARCH 5,2025 m CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS We do not intend to publiclu update or revise any foruard-locking statements as a result of new information. future events, changes in circumstances, or otheruise. These c statements qualify all foruward-locking statements attributable to us, or persons acting on our behalf. Nanagement cautions quot hat the forward-looking statements contain re not quarantees of future performance, an ...

Core Viewpoint - Foot Locker Inc. shares are declining towards an 18-month low despite improving sales and profitability, as the company provided cautious guidance due to economic uncertainties affecting consumer spending [1] Sales Performance - Comparable sales, which reflect sales from stores open for more than a year, have increased for the third consecutive quarter [1] - The company has implemented strategies to enhance in-store experiences, contributing to this sales growth [1] - Foot Locker expects to see another full year of growth in comparable sales [1]

Financial Performance - Total sales for Q4 2024 decreased by 5.8% to $2,243 million compared to $2,380 million in Q4 2023, with a foreign exchange impact leading to a 4.6% decrease when adjusted[4]. - Comparable sales increased by 2.6%, with global Foot Locker and Kids Foot Locker combined comparable sales growth of 3.6%[5]. - Net income from continuing operations was $55 million, a significant recovery from a net loss of $389 million in the prior-year period[11]. - Non-GAAP EPS for Q4 2024 was $0.86, compared to $0.38 in the corresponding prior-year period[11]. - In Q4 2024, the company reported a pre-tax income of $77 million, a significant improvement from a loss of $524 million in Q4 2023[25]. - Adjusted net income (non-GAAP) for Q4 2024 was $82 million, compared to $36 million in Q4 2023, reflecting a 127.8% increase[25]. - The company achieved earnings per share (EPS) of $0.51 in Q4 2024, recovering from a loss of $4.13 per share in Q4 2023[25]. - Net income for 2024 was $12 million, a significant improvement from a net loss of $330 million in 2023[35]. Sales and Store Operations - The full-year 2025 sales outlook is projected to change between -1.0% to +0.5%, with comparable sales expected to grow by 1.0% to 2.5%[13]. - The company completed 160 store refreshes in Q4, bringing the total to over 400 for the year[5]. - The company plans to close all stores in South Korea, Denmark, Norway, and Sweden as part of its strategy to improve international operations[26]. - Total store count as of February 3, 2024, was 2,523, with 26 new stores opened and 139 closed[37]. - Foot Locker U.S. selling square footage decreased from 2,401 thousand in February 2024 to 2,337 thousand in February 2025[37]. - Foot Locker Europe had a total of 637 stores as of February 3, 2024, with 10 new stores opened and 39 closed[37]. Financial Position - Cash and cash equivalents increased to $401 million as of February 1, 2025, up from $297 million a year earlier[33]. - Total liabilities decreased to $3.839 billion as of February 1, 2025, compared to $3.978 billion a year earlier[33]. - The company’s total shareholders' equity increased to $2.909 billion as of February 1, 2025, compared to $2.890 billion a year earlier[33]. - Net cash provided by operating activities increased to $345 million in 2024, compared to $91 million in 2023[35]. - Total cash, cash equivalents, and restricted cash at the end of the period increased to $430 million from $334 million in the previous year[35]. Capital Expenditures and Investments - The company plans to focus on customer-facing investments, with capital expenditures estimated at $270 million for 2025[13]. - Capital expenditures for 2024 were $240 million, slightly down from $242 million in 2023[35]. - Net cash used in investing activities was $240 million in 2024, compared to $222 million in 2023[35]. - The company recorded a $35 million impairment charge related to a minority investment during fiscal year 2024[29]. - The company reported a fair value adjustment loss of $35 million on minority investments in 2024, compared to a loss of $478 million in 2023[35]. Inventory and Merchandise - Merchandise inventories increased by 1.1% year-over-year to $1,525 million, with a 2.5% increase when excluding foreign currency fluctuations[8]. - For fiscal year 2024, the company incurred $32 million in impairment charges related to underperforming stores and $26 million in reorganization costs for headquarters relocation[27].

Core Viewpoint - Foot Locker anticipates continued deep discounts in the sneaker industry as Nike, its largest brand partner, works through inventory challenges, impacting Foot Locker's sales and profit expectations for fiscal 2025 [1][6]. Financial Performance - Foot Locker reported a net income of $49 million, or 51 cents per share, for the fiscal fourth quarter, a significant improvement from a loss of $389 million, or $4.13 per share, a year earlier [3]. - Sales for the quarter decreased to $2.25 billion, down nearly 6% from $2.38 billion a year prior, influenced by an extra week of sales in the previous year [4]. - Adjusted earnings per share for the current fiscal year are expected to be between $1.35 and $1.65, falling short of Wall Street's estimate of $1.77 [5]. Sales Expectations - Foot Locker anticipates comparable sales growth of 1% to 2.5%, with the high end exceeding analysts' expectations of 1.9% [5]. - The company expects promotional pressures to continue affecting margins, particularly in the first half of 2025 [6]. Brand Partnership Challenges - Foot Locker's performance is closely tied to Nike, which represents about 60% of its sales. Nike's current strategy involves deep discounting to clear out old inventory, which negatively impacts Foot Locker's business [6][7]. - There is a disparity in pricing strategies, as Nike offers discounts on its website while Foot Locker maintains full prices for certain models, potentially driving customers to purchase directly from Nike [8][9].

Total Sales Down 5.8% Year-over-Year and Comparable Sales Up 2.6% Global Foot Locker and Kids Foot Locker Comparable Sales Up 3.6% Gross Margin Expansion of 300 Basis Points Year-over-Year GAAP EPS of $0.57 from Continuing Operations and Non-GAAP EPS of $0.86 Completed 160 Store Refreshes in the Quarter, Bringing Total to Over 400 for the Year Issues Full-Year Sales and Non-GAAP EPS Outlook NEW YORK, March 5, 2025 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL) today reported financial results for its fou ...

NEW YORK, Feb. 5, 2025 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL) plans to report financial results for its fourth quarter ended February 1, 2025, before the U.S. markets open on Wednesday, March 5, 2025. A conference call is scheduled for the same day at 8:00 a.m. ET, during which the Company will provide an update on the business.  An investor presentation will be available under the Investor Relations section of the Company's corporate website at footlocker-inc.com before the start of the conference ca ...

Core Insights - Foot Locker, Inc. is returning to NBA All-Star 2025 in San Francisco, reinforcing its leadership in basketball culture through a multi-brand activation featuring exclusive sneaker drops and community engagement [1][2] - The immersive experience will include appearances from NBA stars, interactive games, and exclusive product customization, aimed at connecting with the basketball community [1][3] Company Overview - Foot Locker operates approximately 2,500 retail stores across 26 countries, showcasing a strong history in sneaker culture and authority [7] - The company aims to deepen its connection with consumers through an elevated experience at NBA All-Star 2025, featuring high-profile product releases and athlete appearances [5][6] Event Details - The activation will take place at 150 Powell Street in San Francisco's Union Square from February 13 to February 16, 2025, with specific hours for public access [6] - Featured product releases include the Nike Kobe VI "ASW," Jordan Retro 12 Flu Game, and exclusive colorways of the adidas Anthony Edwards 1 Mid [2][4] Community Engagement - Foot Locker will donate $25,000 to both Morehouse College and Tuskegee University as part of its partnership with the 2025 NBA HBCU Classic [5] - The event will include multiple sweepstakes for local FLX Rewards members, offering chances to win customized merchandise and exclusive giveaways [3][5]

Earnings Performance - Foot Locker's Q3 2024 earnings missed expectations with adjusted EPS of 33 cents, below the Zacks Consensus Estimate of 39 cents, though it increased from 30 cents in the prior-year quarter [5] - Total revenues decreased by 1.4% year-over-year to $1,961 million, missing the Zacks Consensus Estimate of $2,001 million [6] - Comparable sales increased by 2.4% year-over-year, driven by a 2.8% increase in global Foot Locker and Kids Foot Locker sales [6] Margins and Expenses - Gross margin rate increased by 230 basis points (bps) due to lower markdown levels [7] - SG&A expenses as a percentage of sales increased by 210 bps, driven by investments in technology and brand-building, partially offset by cost-optimization savings [7] Store Operations and Expansion - In Q3, the company opened 10 new stores, closed 24 stores, remodeled or relocated 20 stores, and modernized 167 stores to align with updated design standards [8] - As of November 2, 2024, Foot Locker operated 2,450 stores across 26 countries, with 214 franchised stores in the Middle East and Asia [9] Financial Position - The company ended Q3 with $211 million in cash and cash equivalents, long-term debt and finance lease obligations of $440 million, and shareholders' equity of $2.87 billion [10] - Merchandise inventories decreased by 6.3% year-over-year to $1.74 billion [11] Guidance and Outlook - Q4 2024 guidance projects a revenue decline of 3.5% to 1.5%, with comparable sales growth of 1.5% to 3.5% [12] - Full-year 2024 revenue is expected to decline by 1.5% to 1%, with comparable sales growth narrowed to 1-1.5% [13] - Gross margin guidance for 2024 was lowered to 28.7-28.8% due to a more promotional environment [14] - Adjusted EPS guidance for 2024 was revised downward to $1.20-$1.30 from $1.50-$1.70 [15] Industry Comparison - Urban Outfitters, another player in the Retail - Apparel and Shoes industry, reported Q3 2024 revenues of $1.36 billion, a 6.3% year-over-year increase, with EPS of $1.10 compared to $0.88 a year ago [19] - Urban Outfitters is expected to post Q4 earnings of $0.87 per share, a 26.1% increase from the year-ago quarter, with a Zacks Rank 1 (Strong Buy) [20] Market Performance and Estimates - Foot Locker's shares gained 2.4% over the past month, outperforming the S&P 500 [1] - Consensus estimates for Foot Locker have trended downward, with a -23.26% revision over the past month [16] - The stock has a Zacks Rank 3 (Hold) and an aggregate VGM Score of B, with a strong Growth Score of A but a weak Momentum Score of F [17][18]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 1-10299 (Exact name of registrant as specified in its charter) New York 13-3513936 (Stat ...

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