Foot Locker(FL) - 2025 Q4 - Annual Results

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$32 million in impairment charges related to underperforming stores and $26 million in reorganization costs for headquarters relocation[27].