The company, which agreed to a $2.4bn acquisition with Dick's Sporting Goods, attributed the weak performance to “softer traffic trends globally”.
Foot Locker CEO Mary Dillon said: "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. 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.”
Key figures from preliminary first quarter 2025 results
Foot Locker's comparable sales saw a 2.6% decrease from the previous year's figures. The North America region specifically experienced a 0.5% decline in comparable sales.
The anticipated loss per share for the quarter stands at $3.81, which is a significant shift from earnings per share of $0.09 during the first quarter of 2024. On a non-GAAP basis, the expected loss per share is $0.07 for the quarter, down from non-GAAP earnings per share of $0.22 in the corresponding period last year.
The non-GAAP net loss and per-share figures do not include non-cash impairment charges totalling $276m. These charges consist mainly of a $140m tradename charge and a goodwill impairment charge of $110m.
Furthermore, there is a recorded full valuation allowance on deferred tax assets and related costs totalling $124m concerning the company's European business; these are also excluded from non-GAAP results.
Dillon further stated: "In the first quarter, we continued to elevate our in-store experience through our Reimagined and Refresh programs and enhanced our digital offerings, including our new Champs Sports and Kids Foot Locker mobile apps. We have remained focused on increasing engagement through our FLX programme and leveraging our strong brand partnerships to generate excitement for our customers."
The company reported net worldwide sales of $7.97bn and net income of $12m for fiscal year 2024.
Foot Locker will refrain from issuing new financial forecasts or revising any prior projections due to the deal with Dick's.
