Foot Locker, Inc. (NYSE:FL) saw its stock decline on Wednesday after the company reported second-quarter results that fell below analyst forecasts, as weaker performance in its international and WSS segments offset gains in North America.
Shares fell 2.42% in pre-market trading following the announcement.
The retailer posted a non-GAAP loss of $0.27 per share, missing the analyst consensus of $0.11 in earnings per share. Total revenue came to $1.85 billion, slightly below the expected $1.87 billion and down 2.4% compared to the same period last year.
Despite the overall decline, Foot Locker’s North American business showed signs of strength, with comparable sales rising 1.4%. This growth was driven by Foot Locker, Kids Foot Locker, and Champs Sports stores, with Champs Sports posting its fourth consecutive quarter of positive comparable sales, up 2.0%.
“In the second quarter, we built sequential momentum and delivered positive North American comparable sales results,” said CEO Mary Dillon. “At the same time, our results reflect a challenging operating environment and soft store traffic trends, particularly in our WSS and international businesses.”
International markets continued to face headwinds, with comparable sales in Europe and Asia Pacific declining 10.3%. WSS also experienced a drop in comparable sales of 8.1%.
Gross margin fell 50 basis points from the prior year, largely due to lower merchandise margins.
The company continued its “Lace Up Plan,” updating 52 stores and opening 11 reimagined locations during the quarter, including the first two Champs Sports stores in the new format.
Foot Locker confirmed it has received all necessary regulatory approvals for its pending acquisition by DICK’S Sporting Goods, with the deal expected to close on September 8, 2025.
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