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NEW YORK - On Wednesday, Foot Locker, Inc. (NYSE:FL) reported second-quarter results that missed analyst expectations, with weakness in its international and WSS businesses offsetting positive performance in North America.
The footwear retailer’s shares dropped 2.42% in pre-market trading after the announcement.
The company reported a non-GAAP loss of $0.27 per share, significantly worse than the analyst estimate of $0.11 earnings per share. Revenue came in at $1.85 billion, below the consensus estimate of $1.87 billion and down 2.4% YoY.
Despite the overall decline, Foot Locker showed signs of improvement in its North American operations, where comparable sales increased 1.4%. This was led by positive performance in the Foot Locker, Kids Foot Locker, and Champs Sports banners. Champs Sports posted its fourth consecutive quarter of positive comparable sales growth, up 2.0%.
"In the second quarter, we built sequential momentum and delivered positive North American comparable sales results," said Mary Dillon, Chief Executive Officer. "At the same time, our results reflect a challenging operating environment and soft store traffic trends, particularly in our WSS and international businesses."
International operations continued to struggle, with comparable sales in European and Asia Pacific businesses declining by 10.3%. The WSS banner saw comparable sales drop 8.1%.
Gross margin decreased by 50 basis points compared to the prior-year period, primarily due to lower merchandise margins.
The company continued to execute its "Lace Up Plan," refreshing 52 stores and opening 11 reimagined locations during the quarter, including the first two Champs Sports stores under the new format.
Foot Locker also noted that it has received all required regulatory approvals for its pending acquisition by DICK’S Sporting Goods, with the transaction expected to close on September 8, 2025.
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