Foot Locker, Inc. (NYSE: FL) is a retailer specializing in athletic footwear and apparel, operating a diverse portfolio of global brands including Foot Locker, Champs Sports, and Kids Foot Locker. The company is currently in a decline, as evidenced by its first quarter financial results reported for the period ending May 3, 2025. Total sales decreased by 4.6% to $1,788 million from $1,874 million year-over-year. Comparable sales also fell by 2.6%, with a notable 8.5% decline in the company’s international businesses, particularly in Foot Locker Europe.

The company reported a net loss of $363 million, a stark contrast to a net income of $8 million in the prior-year quarter. The loss per share stood at $3.81, down from earnings per share of $0.09 a year earlier. On a non-GAAP basis, the loss per share was $0.07, compared to non-GAAP earnings per share of $0.22 in the same quarter last year.

Gross margin declined by 40 basis points from the previous year. Merchandise margins were down by 10 basis points, while occupancy as a percentage of sales increased by 30 basis points. Selling, general and administrative (SG&A) expenses as a percentage of sales rose by 100 basis points, with total SG&A dollars decreasing slightly by 0.7% due to cost optimization efforts.

The company reported $343 million in cash and cash equivalents, alongside a total debt of $445 million. Merchandise inventories reached $1,665 million, reflecting a 0.4% increase compared to the previous year. Excluding foreign currency fluctuations, merchandise inventories were down 0.7%.

During the quarter, Foot Locker opened nine new stores while closing 56, resulting in a total store base of 2,363 stores across 20 countries. The company also modernized its stores, refreshing 69 locations and remodeling or relocating 11 stores.

In terms of guidance, Foot Locker has suspended providing future operational forecasts due to the pending acquisition agreement with DICK’S Sporting Goods, announced on May 15, 2025. The company opted not to host an earnings call following this announcement.

The company continues to focus on its store modernization efforts amid recently reported performance challenges, which have hindered its financial results.