In light of the confirmed merger agreement with Dick’s Sporting Goods, Inc, Foot Locker, Inc. is reporting preliminary financial results for its fiscal first quarter ended May 3, 2025.
First quarter comparable sales decreased by 2.6 percent from the prior-year period, with comparable sales in the North America region decreasing by 0.5 percent.
The company expects the net loss for the period to be $363 million, compared with net income of $8 million in the prior-year Q1 period. On a non-GAAP basis, the company expects the net loss to be $6 million for the first quarter, compared with net income of $21 million in the corresponding prior-year period.
Foot Locker expects the first quarter loss per share to be $3.81, compared with earnings per share of 9 cents in the first quarter of 2024, and a non-GAAP loss to be 7 cents per share in the first quarter, compared with non-GAAP earnings per share of 22 cents in the corresponding prior-year period.
Non-GAAP net loss and net loss per share exclude non-cash impairment charges totaling $276 million and primarily reflect a $140 million charge related to a tradename and a goodwill impairment charge of $110 million.
Additionally, the company recorded a full valuation allowance on its deferred tax assets and deferred tax costs related to the company’s European business totaling $124 million, excluded from its non-GAAP results.
“Despite making ongoing progress with our Lace Up Plan, our preliminary first quarter results are below our expectations as we experienced softer traffic trends globally,” offered company CEO Mary Dillon. “We continued to manage our promotional levels and maintain inventory and expense discipline, and we have taken actionable steps to advance these efforts and remain nimble and well-positioned in an uncertain macroeconomic backdrop.”
Image courtesy Foot Locker, Inc.
See below for SGB Media coverage of the Dick’s SG/Foot Locker merger deal:
EXEC: Dick’s SG and Foot Locker Confirm $2.4 Billion Merger Deal
