- Total Sales Increased 2.0%; Comparable Sales Decreased
0.7%
- Foot Locker and Kids Foot Locker North America Comparable
Sales Increased +5.2%
- EPS Loss of $4.13 and Non-GAAP
EPS Income of $0.38
- Inventory Decreased 8.2% Year-over-Year
- Anticipates Return to Positive Comparable Sales Growth and
EBIT Margin Expansion in 2024
- 2024 Non-GAAP EPS Guidance of $1.50-$1.70
including a Non-Recurring Charge of $0.10
- Provides Update on Timing to Achieve Lace Up Plan Financial
Targets
NEW
YORK, March 6, 2024 /PRNewswire/ -- Foot Locker,
Inc. (NYSE: FL), the New
York-based specialty athletic retailer, today reported
financial results for its fourth quarter ended February 3, 2024.
Mary Dillon, President and Chief
Executive Officer, said, "We are pleased to report fourth quarter
results ahead of our expectations, including meaningfully
accelerated sales trends relative to the third quarter, earnings
per share that exceeded our guidance range, and improvements across
multiple KPIs. As we continued to deliver on the strategic
imperatives of our Lace Up Plan, we built significant momentum
through the holiday season, driven by full-price selling in
addition to compelling promotions. We also proactively reinvested
in markdowns to end the year with leaner inventory levels compared
to our expectations."
Ms. Dillon continued, "As we continue evolving into a modern,
omnichannel retailer for 'all things sneakers,' we are making
important progress strengthening our brand partnerships, increasing
customer engagement, transforming our real estate footprint, and
driving growth in digital. We are especially excited about
strengthening our basketball leadership position, including a
successful activation at NBA All-Star 2024. To further build
on our progress, we are leaning into strategic investments in
digital, store experience, loyalty, and brand-building in
2024. The Foot Locker brand will celebrate its 50th
anniversary later this year, and we are confident that our Lace Up
Plan is positioning the Company for longer-term sustainable growth
and shareholder value creation, while laying the right foundation
for our next 50 years of success."
Fourth Quarter Results
- Total sales inclusive of the 53rd week increased by
2.0%, to $2,380 million, as compared
with sales of $2,334 million in the
fourth quarter of 2022. Excluding the effect of foreign exchange
rate fluctuations, total sales for the fourth quarter increased by
1.5%.
- Comparable sales decreased by 0.7%, driven by a 210 basis-point
impact from repositioning the Champs Sports banner, consumer
softness, and changing vendor mix. Importantly, combined comparable
sales increased 5.2% in the Foot Locker and Kids Foot Locker North
American banners.
Please refer to the Sales by Banner table
below for detailed sales performance by banner and region.
- Gross margin declined by 350 basis points as compared with the
prior-year period, primarily as a result of higher markdowns,
partially offset by occupancy leverage.
- SG&A as a percentage of sales increased by 10 basis points
compared with the prior-year period, with savings from the cost
optimization program more than offset by inflation and investments
in front-line wages and technology.
- Fourth quarter net loss was $389
million, as compared with net income of $19 million in the corresponding prior-year
period. On a Non-GAAP basis, net income was $36 million, as compared with $92 million in the corresponding prior-year
period.
- Fourth quarter diluted loss per share was $4.13, as compared with earnings per share of
$0.20 in the fourth quarter of 2022.
Fourth quarter results include a $0.12 contribution from the 53rd week of 2023.
Non-GAAP earnings per share decreased to $0.38 in the fourth quarter, as compared with
$0.97 in the corresponding prior-year
period.
- Non-GAAP results exclude, among other items, non-cash charges
of $478 million related to the
Company's minority investments and $75
million related to the Company's partial settlement of its
pension plan obligations. The Company assesses the carrying value
of its minority investments for impairment whenever events or
circumstances indicate that the carrying value may not be
recoverable. The pension settlement charge of $75 million represents the acceleration of losses
that were previously deferred. As part of efforts to reduce pension
plan obligations, the Company transferred the plan's registered
assets and liabilities to an insurance company through the purchase
of a group annuity contract, under which an insurance company is
required to directly pay and administer pension payments to certain
pension plan participants, or their designated beneficiaries.
See the tables below for the reconciliation
of Non-GAAP measures.
Balance Sheet
At quarter-end, the Company had cash and cash equivalents of
$297 million, and total debt
was $447 million.
As of February 3, 2024, the Company's merchandise
inventories were $1,509 million, 8.2%
lower than at the end of the fourth quarter last year.
Excluding the effect of foreign currency fluctuations, merchandise
inventories decreased by 7.8% as compared with the fourth quarter
of last year.
Store Base Update
During the fourth quarter, the Company opened 29 new
stores, remodeled, or relocated 66 stores, and closed
113 stores.
As of February 3, 2024, the
Company operated 2,523 stores in 26 countries in North
America, Europe, Asia, Australia, and New
Zealand. In addition, 202 licensed stores were
operating in the Middle East and Asia.
2024 Financial Outlook and Update on Timing to Achieve Lace
Up Financial Targets and Capital Allocation
Mike Baughn, Executive Vice
President and Chief Financial Officer, said, "We maintain
conviction in the longer-term earnings potential that our Lace Up
plan will generate and reiterate the 8.5-9% EBIT margin target
communicated at our March 2023
Investor Day. Given our lower starting point exiting 2023, we
expect a two-year delay in achieving that goal and now see reaching
that target by 2028."
Mr. Baughn continued, "As our margins and cash flows improve, we
will continue to prioritize investing in our business, and
enhancing financial flexibility to continue to support our
strategic objectives. In that context, 2024 will serve as a
cash rebuilding year, and we, therefore, are not resuming a
dividend at this time. We are confident, however, that our
strategy will unlock longer-term shareholder value, including a
return to quarterly dividends and share repurchases over
time."
The Company's full year 2024 outlook, representing the 52 weeks
ending February 1, 2025, is
summarized in the table below.
Note that the Company's full-year EPS guidance includes an
approximate $0.10 non-recurring
charge in the second quarter of 2024 from the anticipated rollout
to the rest of North America of
its enhanced FLX loyalty program. This charge is anticipated as
loyalty points will be converted into additional benefits for the
Company's customers.
Metric
|
Full Year 2024
Guidance
|
Commentary
|
|
Sales Change
|
-1.0% to
+1.0%
|
~1% annual headwind
from lapping 53rd week in 2023
|
Comparable Sales
Change
|
+1.0 to
+3.0%
|
|
Store Count
Change
|
Down ~4%
|
|
Square Footage
Change
|
Down ~1%
|
|
Licensing
Revenue
|
~$17 million
|
|
Gross Margin
|
29.8% to
30.0%
|
Lower markdowns
year-on-year
|
SG&A
Rate
|
24.4% to
24.6%
|
Ongoing investment
spending
|
D&A
|
$210 to $215
million
|
|
EBIT Margin
|
2.8% to 3.2%
|
|
Net Interest
|
~$12 million
|
|
Non-GAAP Tax
Rate
|
35.0%-36.0%
|
|
Non-GAAP EPS
|
$1.50-$1.70
|
|
Adj. Capital
Expenditures*
|
$345
million
|
|
|
* Adjusted Capex
includes capitalized Technology expense
|
The Company provides earnings guidance only on a non-GAAP basis
and does not provide a reconciliation of the Company's
forward-looking EBIT, capital expenditures, and diluted
earnings per share guidance to the most directly comparable GAAP
financial measures because of the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliations.
Conference Call and Webcast
The Company will host a
conference call at 9:00 a.m. ET
today, March 6, 2024, to review its
fourth quarter 2023 results and provide an update on the business.
An investor presentation will be available on the Investor
Relations section of the Company's corporate website before the
start of the conference call. The call may be accessed live by
calling toll-free 1-844-701-1163 or international toll
1-412-317-5490, or via footlocker-inc.com. Please log on to the
website 15 minutes prior to the call to register. An archived
replay of the conference call will be accessible approximately one
hour following the end of the call through March 20, 2024 by calling 1-877-344-7529 in the
U.S., 1-855-669-9658 in Canada,
and 1-412-317-0088 internationally with passcode 5612202. A webcast
replay will also be available at footlocker-inc.com.
Disclosure Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Other than statements
of historical facts, all statements which address activities,
events, or developments that the Company anticipates will or may
occur in the future, including, but not limited to, such things as
future capital expenditures, expansion, strategic plans, financial
objectives, dividend payments, stock repurchases, financial
outlook, and other such matters, are forward-looking statements.
These forward-looking statements are based on many assumptions and
factors, which are detailed in the Company's filings with
the U.S. Securities and Exchange Commission.
These forward-looking statements are based largely on our
expectations and judgments and are subject to a number of risks and
uncertainties, many of which are unforeseeable and beyond our
control. For additional discussion regarding risks and
uncertainties that may affect forward-looking statements, see
"Risk Factors" disclosed in the Company's Annual
Report on Form 10-K for the year ended January 28, 2023, filed on March 27, 2023. Any changes in such assumptions
or factors could produce significantly different results. The
Company undertakes no obligation to update the forward-looking
statements, whether as a result of new information, future events,
or otherwise.
FOOT LOCKER,
INC.
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
Periods ended
February 3, 2024 and January 28, 2023
|
(In millions, except
per share amounts)
|
|
|
|
Fourth
Quarter
|
|
|
Year-to-Date
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Sales
|
|
$
|
2,380
|
|
|
$
|
2,334
|
|
|
$
|
8,154
|
|
|
$
|
8,747
|
|
Licensing
revenue
|
|
|
4
|
|
|
|
3
|
|
|
|
14
|
|
|
|
12
|
|
Total
revenue
|
|
|
2,384
|
|
|
|
2,337
|
|
|
|
8,168
|
|
|
|
8,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
1,746
|
|
|
|
1,632
|
|
|
|
5,895
|
|
|
|
5,955
|
|
Selling, general and
administrative expenses
|
|
|
533
|
|
|
|
521
|
|
|
|
1,852
|
|
|
|
1,903
|
|
Depreciation and
amortization
|
|
|
51
|
|
|
|
51
|
|
|
|
199
|
|
|
|
208
|
|
Impairment and
other
|
|
|
21
|
|
|
|
74
|
|
|
|
80
|
|
|
|
112
|
|
Income from
operations
|
|
|
33
|
|
|
|
59
|
|
|
|
142
|
|
|
|
581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(2)
|
|
|
|
(2)
|
|
|
|
(9)
|
|
|
|
(15)
|
|
Other (expense) income,
net
|
|
|
(555)
|
|
|
|
(9)
|
|
|
|
(556)
|
|
|
|
(42)
|
|
(Loss) income from
continuing operations before income taxes
|
|
|
(524)
|
|
|
|
48
|
|
|
|
(423)
|
|
|
|
524
|
|
Income tax (benefit)
expense
|
|
|
(135)
|
|
|
|
26
|
|
|
|
(93)
|
|
|
|
180
|
|
Net (loss) income from
continuing operations
|
|
|
(389)
|
|
|
|
22
|
|
|
|
(330)
|
|
|
|
344
|
|
Net loss from
discontinued operations, net of tax
|
|
|
—
|
|
|
|
(3)
|
|
|
|
—
|
|
|
|
(3)
|
|
Net (loss)
income
|
|
|
(389)
|
|
|
|
19
|
|
|
|
(330)
|
|
|
|
341
|
|
Net loss attributable
to noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
Net (loss) income
attributable to Foot Locker, Inc.
|
|
$
|
(389)
|
|
|
$
|
19
|
|
|
$
|
(330)
|
|
|
$
|
342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share from continuing operations attributable to Foot Locker,
Inc.
|
|
$
|
(4.13)
|
|
|
$
|
0.24
|
|
|
$
|
(3.51)
|
|
|
$
|
3.62
|
|
Net loss per share from
discontinued operations, net of tax
|
|
$
|
—
|
|
|
$
|
(0.04)
|
|
|
$
|
—
|
|
|
$
|
(0.04)
|
|
Net (loss) earnings per
share attributable to Foot Locker, Inc.
|
|
$
|
(4.13)
|
|
|
$
|
0.20
|
|
|
$
|
(3.51)
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
diluted shares outstanding
|
|
|
94.4
|
|
|
|
94.9
|
|
|
|
94.2
|
|
|
|
95.5
|
|
Non-GAAP Financial Measures
In addition to reporting the Company's financial results in
accordance with generally accepted accounting principles ("GAAP"),
the Company reports certain financial results that differ from what
is reported under GAAP. Non-GAAP financial measures that will be
presented will exclude (i) gains or losses related to our minority
investments, (ii) impairments and other, and (iii) certain tax
matters that we believe are nonrecurring or unusual in nature.
Certain financial measures are identified as non-GAAP, such as
sales changes excluding foreign currency fluctuations, adjusted
income before income taxes, adjusted net income, and adjusted
diluted earnings per share. We present certain amounts as excluding
the effects of foreign currency fluctuations, which are also
considered non-GAAP measures. Where amounts are expressed as
excluding the effects of foreign currency fluctuations, such
changes are determined by translating all amounts in both years
using the prior-year average foreign exchange rates. Presenting
amounts on a constant currency basis is useful to investors because
it enables them to better understand the changes in our business
that are not related to currency movements.
These non-GAAP measures are presented because we believe they
assist investors in comparing our performance across reporting
periods on a consistent basis by excluding items that we do not
believe are indicative of our core business or affect
comparability. In addition, these non-GAAP measures are useful in
assessing our progress in achieving our long-term financial
objectives and are consistent with how executive compensation is
determined.
FOOT LOCKER, INC.
Non-GAAP
Reconciliation
(unaudited)
Periods ended February
3, 2024 and January 28,
2023
(In millions, except per share
amounts)
We estimate the tax effect of all non-GAAP adjustments by
applying a marginal tax rate to each item. The income tax items
represent the discrete amount that affected the period. The
non-GAAP financial information is provided in addition, and not as
an alternative, to our reported results prepared in accordance with
GAAP. The various non-GAAP adjustments are summarized in the tables
below.
Reconciliation of
GAAP to non-GAAP results:
|
|
|
|
|
|
Fourth
Quarter
|
|
|
Year-to-Date
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Pre-tax
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations before income taxes
|
|
$
|
(524)
|
|
|
$
|
48
|
|
|
$
|
(423)
|
|
|
$
|
524
|
|
Pre-tax adjustments
excluded from GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other
(1)
|
|
|
21
|
|
|
|
74
|
|
|
|
80
|
|
|
|
112
|
|
Other expense / income
(2)
|
|
|
554
|
|
|
|
9
|
|
|
|
548
|
|
|
|
41
|
|
Adjusted income before
income taxes (non-GAAP)
|
|
$
|
51
|
|
|
$
|
131
|
|
|
$
|
205
|
|
|
$
|
677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Foot Locker, Inc.
|
|
$
|
(389)
|
|
|
$
|
19
|
|
|
$
|
(330)
|
|
|
$
|
342
|
|
After-tax adjustments
excluded from GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other,
net of income tax benefit of $7, $11, $18, and $21 million,
respectively (1)
|
|
|
14
|
|
|
|
63
|
|
|
|
62
|
|
|
|
91
|
|
Other expense /
income, net of income tax benefit of $143, $2, $142, and $9
million, respectively (2)
|
|
|
411
|
|
|
|
7
|
|
|
|
406
|
|
|
|
32
|
|
Net loss from
discontinued operations, net of income tax benefit of $-, $1, $-,
and $1, respectively (3)
|
|
|
—
|
|
|
|
3
|
|
|
|
—
|
|
|
|
3
|
|
Tax reserves benefit /
charge (4)
|
|
|
—
|
|
|
|
—
|
|
|
|
(4)
|
|
|
|
5
|
|
Adjusted net income
(non-GAAP)
|
|
$
|
36
|
|
|
$
|
92
|
|
|
$
|
134
|
|
|
$
|
473
|
|
|
|
|
Fourth
Quarter
|
|
|
Year-to-Date
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share attributable to Foot Locker, Inc.
|
|
$
|
(4.13)
|
|
|
$
|
0.20
|
|
|
$
|
(3.51)
|
|
|
$
|
3.58
|
|
Diluted EPS amounts
excluded from GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and
other (1)
|
|
|
0.15
|
|
|
|
0.66
|
|
|
|
0.66
|
|
|
|
0.95
|
|
Other expense /
income (2)
|
|
|
4.36
|
|
|
|
0.07
|
|
|
|
4.31
|
|
|
|
0.33
|
|
Net loss from
discontinued operations (3)
|
|
|
—
|
|
|
|
0.04
|
|
|
|
—
|
|
|
|
0.04
|
|
Tax reserves benefit /
charge (4)
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.04)
|
|
|
|
0.05
|
|
Adjusted diluted
earnings per share (non-GAAP)
|
|
$
|
0.38
|
|
|
$
|
0.97
|
|
|
$
|
1.42
|
|
|
$
|
4.95
|
|
Notes on Non-GAAP
Adjustments:
|
|
(1)
|
For the fourth
quarter of 2023, impairment and other included $11 million of
impairment of long-lived assets and right-of-use assets and
accelerated tenancy charges. These were incurred as part of the
Company's annual review of underperforming stores and the planned
wind down of its U.S. atmos stores, partially offset by a net
benefit from the settlement of lease obligations associated
with Sidestep store closures. In addition, the Company recorded
intangible asset impairment of $9 million on an atmos tradename and
reorganization costs of $5 million. These charges were
partially offset by a $4 million reduction in the fair value of the
atmos contingent consideration liability.
For fiscal year 2023,
impairment and other included impairment
charges of $30 million from a review of
underperforming stores and accelerated tenancy charges on
right-of-use assets for closures of the Sidestep banner and certain
Foot Locker Asia stores. Additionally, the Company incurred
transformation consulting expense of $27 million and
reorganization costs of $17 million primarily related to
severance and the closures of the Sidestep banner, certain
Foot Locker Asia stores, and a North American distribution center.
The fiscal year also included the atmos intangible asset impairment
of $9 million, partially offset by the $4 million reduction in the
fair value of the atmos contingent consideration.
|
FOOT LOCKER, INC.
Non-GAAP
Reconciliation
(unaudited)
Periods ended February
3, 2024 and January 28,
2023
(In millions, except per share
amounts)
Notes on Non-GAAP
Adjustments (continued):
|
|
|
For the fourth quarter
of 2022, impairment and other charges included $53 million of
impairment of long-lived assets and right-of-use assets and
accelerated tenancy charges. These were incurred as a result of the
Company's planned wind down of the Sidestep banner, a review
of underperforming stores, and the continued wind down of
the remaining Footaction stores. Additionally, the
Company recorded $20 million of primarily severance costs related
to a reorganization, $15 million of transformation consulting, $9
million of litigation costs related to an employment matter, and $8
million of Sidestep tradename asset impairment, partially
offset by a $31 million reduction in the fair value of
the atmos contingent consideration liability.
For fiscal year 2022,
impairment and other charges included $58 million of impairment of
long-lived assets and right-of-use assets and accelerated tenancy
charges, $42 million of transformation consulting, $22 million of
primarily severance costs related to a reorganization, $9 million
of litigation costs related to an employment matter, $8 million of
Sidestep tradename asset impairment, and $4 million of
acquisition integration costs, partially offset by a $31 million
reduction in the fair value of the atmos contingent
consideration liability.
|
|
|
(2)
|
For the fourth
quarter of 2023, other income / expense primarily consisted of a
$478 million non-cash charge on minority investments and a $75
million charge related to the partial settlement of pension plan
obligations. The adjustment related to the Company's minority
investments was triggered by an assessment of impairment.
During the fourth quarter, as part of efforts to reduce
pension plan obligations, the Company transferred
approximately $109 million of its U.S. Qualified pension plan
registered assets and liabilities to an insurance company through
the purchase of a group annuity contract, under which an insurance
company is required to directly pay and administer pension payments
to certain pension plan participants, or their designated
beneficiaries. In connection with this transaction, the Company
recorded a non-cash pretax settlement charge of $75 million. This
settlement charge accelerated the recognition of previously
unrecognized losses in "Accumulated Other Comprehensive
Loss." Additionally, fiscal year 2023 also included a $3
million gain from the sale of a North American corporate office
property, a $3 million gain from the sale of the
Singapore and Malaysian Foot Locker businesses to a license
partner, and $2 million of the Company's share of losses related to
equity method investments.
Other income / expense
for the fourth quarter of 2022 consisted of a $9 million loss on
the sale of the minority investment in Retailors, Ltd. Fiscal year
2022 also included a $53 million loss on the changes in fair value
of the investment in Retailors, Ltd., partially offset by $1
million of dividend income from this investment, and the Company's
share of income related to other equity method investments of
$1 million. Additionally, the Company recognized a $19 million gain
on the divestiture of the Team Sales business that occurred in the
second quarter of 2022.
|
|
|
(3)
|
In the fourth quarter
of 2022, the Company recorded a charge to discontinued operations
of $4 million ($3 million after tax) related to the resolution of a
legal matter of a business it formerly operated.
|
|
|
(4)
|
In the
first quarter of 2023, the Company recorded a $4 million
benefit related to income tax reserves due to a statute of
limitations release. In the second quarter of 2022, the Company
recorded a $5 million charge related to income tax reserves due to
the resolution of a foreign tax settlement.
|
FOOT LOCKER,
INC.
|
Sales by
Banner
|
(unaudited)
|
|
Periods
ended February 3, 2024 and January 28,
2023
|
(In
millions)
|
|
|
|
Fourth
Quarter
|
|
|
Year-to-Date
|
|
|
|
2023
|
|
|
2022
|
|
|
Constant
Currencies
|
|
|
Comparable
Sales
|
|
|
2023
|
|
|
2022
|
|
|
Constant
Currencies
|
|
|
Comparable
Sales
|
|
Foot Locker
|
|
$
|
961
|
|
|
$
|
893
|
|
|
|
7.5
|
%
|
|
|
4.8
|
%
|
|
$
|
3,205
|
|
|
$
|
3,304
|
|
|
|
(2.7)
|
%
|
|
|
(2.3)
|
%
|
Champs
Sports
|
|
|
372
|
|
|
|
415
|
|
|
|
(10.4)
|
|
|
|
(10.4)
|
|
|
|
1,304
|
|
|
|
1,681
|
|
|
|
(22.2)
|
|
|
|
(20.4)
|
|
Kids Foot
Locker
|
|
|
214
|
|
|
|
192
|
|
|
|
11.5
|
|
|
|
6.9
|
|
|
|
716
|
|
|
|
708
|
|
|
|
1.1
|
|
|
|
0.2
|
|
WSS
|
|
|
182
|
|
|
|
166
|
|
|
|
9.6
|
|
|
|
(6.1)
|
|
|
|
640
|
|
|
|
604
|
|
|
|
6.0
|
|
|
|
(6.8)
|
|
Other
|
|
|
—
|
|
|
|
15
|
|
|
|
n.m.
|
|
|
|
n.m.
|
|
|
|
1
|
|
|
|
126
|
|
|
|
n.m.
|
|
|
|
n.m.
|
|
North
America
|
|
|
1,729
|
|
|
|
1,681
|
|
|
|
2.8
|
|
|
|
(0.7)
|
|
|
|
5,866
|
|
|
|
6,423
|
|
|
|
(8.5)
|
|
|
|
(8.7)
|
|
Foot Locker
|
|
|
495
|
|
|
|
455
|
|
|
|
5.1
|
|
|
|
0.3
|
|
|
|
1,697
|
|
|
|
1,628
|
|
|
|
1.0
|
|
|
|
(0.8)
|
|
Sidestep
|
|
|
—
|
|
|
|
25
|
|
|
|
n.m.
|
|
|
|
n.m.
|
|
|
|
26
|
|
|
|
94
|
|
|
|
n.m.
|
|
|
|
n.m.
|
|
EMEA
|
|
|
495
|
|
|
|
480
|
|
|
|
(0.4)
|
|
|
|
(1.0)
|
|
|
|
1,723
|
|
|
|
1,722
|
|
|
|
(3.1)
|
|
|
|
(2.1)
|
|
Foot Locker
|
|
|
106
|
|
|
|
122
|
|
|
|
(10.7)
|
|
|
|
0.6
|
|
|
|
387
|
|
|
|
414
|
|
|
|
(3.1)
|
|
|
|
4.7
|
|
atmos
|
|
|
50
|
|
|
|
51
|
|
|
|
3.9
|
|
|
|
(1.8)
|
|
|
|
178
|
|
|
|
188
|
|
|
|
0.5
|
|
|
|
(2.1)
|
|
Asia Pacific
|
|
|
156
|
|
|
|
173
|
|
|
|
(6.4)
|
|
|
|
(0.2)
|
|
|
|
565
|
|
|
|
602
|
|
|
|
(2.0)
|
|
|
|
2.6
|
|
Total
|
|
$
|
2,380
|
|
|
$
|
2,334
|
|
|
|
1.5
|
%
|
|
|
(0.7)
|
%
|
|
$
|
8,154
|
|
|
$
|
8,747
|
|
|
|
(7.0)
|
%
|
|
|
(6.7)
|
%
|
FOOT LOCKER,
INC.
|
Condensed
Consolidated Balance Sheets
|
(unaudited)
|
(In
millions)
|
|
|
|
February
3,
|
|
|
January
28,
|
|
|
|
2024
|
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
297
|
|
|
$
|
536
|
|
Merchandise
inventories
|
|
|
1,509
|
|
|
|
1,643
|
|
Other current
assets
|
|
|
419
|
|
|
|
342
|
|
|
|
|
2,225
|
|
|
|
2,521
|
|
Property and equipment,
net
|
|
|
930
|
|
|
|
920
|
|
Operating lease
right-of-use assets
|
|
|
2,188
|
|
|
|
2,443
|
|
Deferred
taxes
|
|
|
114
|
|
|
|
90
|
|
Goodwill
|
|
|
768
|
|
|
|
785
|
|
Other intangible
assets, net
|
|
|
399
|
|
|
|
426
|
|
Minority
investments
|
|
|
152
|
|
|
|
630
|
|
Other assets
|
|
|
92
|
|
|
|
92
|
|
|
|
$
|
6,868
|
|
|
$
|
7,907
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
366
|
|
|
$
|
492
|
|
Accrued and other
liabilities
|
|
|
428
|
|
|
|
568
|
|
Current portion of
long-term debt and obligations under finance leases
|
|
|
5
|
|
|
|
6
|
|
Current portion of
lease obligations
|
|
|
492
|
|
|
|
544
|
|
|
|
|
1,291
|
|
|
|
1,610
|
|
Long-term debt and
obligations under finance leases
|
|
|
442
|
|
|
|
446
|
|
Long-term lease
obligations
|
|
|
2,004
|
|
|
|
2,230
|
|
Other
liabilities
|
|
|
241
|
|
|
|
328
|
|
Total
liabilities
|
|
|
3,978
|
|
|
|
4,614
|
|
Total shareholders'
equity
|
|
|
2,890
|
|
|
|
3,293
|
|
|
|
$
|
6,868
|
|
|
$
|
7,907
|
|
FOOT LOCKER,
INC.
|
Condensed
Consolidated Statement of Cash Flows
|
(unaudited)
|
(In
millions)
|
|
($ in
millions)
|
|
2023
|
|
|
2022
|
|
From operating
activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
(330)
|
|
|
$
|
341
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
Non-cash impairment
and other
|
|
|
40
|
|
|
|
67
|
|
Pension settlement
charge
|
|
|
75
|
|
|
|
—
|
|
Fair value adjustments
to minority investments
|
|
|
478
|
|
|
|
61
|
|
Fair value change in
contingent consideration
|
|
|
(4)
|
|
|
|
(31)
|
|
Depreciation and
amortization
|
|
|
199
|
|
|
|
208
|
|
Deferred income
taxes
|
|
|
(136)
|
|
|
|
21
|
|
Share-based
compensation expense
|
|
|
13
|
|
|
|
31
|
|
Gain on sales of
businesses
|
|
|
(3)
|
|
|
|
(19)
|
|
Gain on sale of
property
|
|
|
(3)
|
|
|
|
—
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
(397)
|
|
Merchandise
inventories
|
|
|
120
|
|
|
|
(101)
|
|
Accounts
payable
|
|
|
(122)
|
|
|
|
(1)
|
|
Accrued and other
liabilities
|
|
|
(109)
|
|
|
|
—
|
|
Other, net
|
|
|
(127)
|
|
|
|
(7)
|
|
Net cash provided by
operating activities
|
|
|
91
|
|
|
|
173
|
|
From investing
activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(242)
|
|
|
|
(285)
|
|
Purchase of business,
net of cash acquired
|
|
|
—
|
|
|
|
(14)
|
|
Minority
investments
|
|
|
(2)
|
|
|
|
(5)
|
|
Proceeds from sales of
businesses
|
|
|
16
|
|
|
|
47
|
|
Proceeds from minority
investments
|
|
|
—
|
|
|
|
95
|
|
Proceeds from sale of
property
|
|
|
6
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(222)
|
|
|
|
(162)
|
|
From financing
activities:
|
|
|
|
|
|
|
|
|
Proceeds from the
revolving credit facility
|
|
|
146
|
|
|
|
—
|
|
Repayment of the
revolving credit facility
|
|
|
(146)
|
|
|
|
—
|
|
Purchase of treasury
shares
|
|
|
—
|
|
|
|
(129)
|
|
Dividends paid on
common stock
|
|
|
(113)
|
|
|
|
(150)
|
|
Payment of obligations
under finance leases
|
|
|
(6)
|
|
|
|
(6)
|
|
Shares of common stock
repurchased to satisfy tax withholding obligations
|
|
|
(10)
|
|
|
|
(1)
|
|
Treasury stock
reissued under employee stock plan
|
|
|
4
|
|
|
|
3
|
|
Proceeds from exercise
of stock options
|
|
|
5
|
|
|
|
6
|
|
Purchase of
non-controlling interest
|
|
|
—
|
|
|
|
(2)
|
|
Net cash used in
financing activities
|
|
|
(120)
|
|
|
|
(279)
|
|
Effect of exchange rate
fluctuations on cash, cash equivalents, and restricted
cash
|
|
|
3
|
|
|
|
—
|
|
Net change in cash,
cash equivalents, and restricted cash
|
|
|
(248)
|
|
|
|
(268)
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
|
582
|
|
|
|
850
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
334
|
|
|
$
|
582
|
|
FOOT LOCKER,
INC.
|
Store Count and
Square Footage
|
(unaudited)
|
|
Store activity is as
follows:
|
|
|
|
January
28,
|
|
|
|
|
|
|
|
|
|
|
February
3,
|
|
|
Relocations/
|
|
|
|
2023
|
|
|
Opened
|
|
|
Closed
|
|
|
2024
|
|
|
Remodels
|
|
Foot Locker
U.S.
|
|
|
747
|
|
|
|
7
|
|
|
|
31
|
|
|
|
723
|
|
|
|
50
|
|
Foot Locker
Canada
|
|
|
86
|
|
|
|
1
|
|
|
|
2
|
|
|
|
85
|
|
|
|
6
|
|
Champs
Sports
|
|
|
486
|
|
|
|
1
|
|
|
|
83
|
|
|
|
404
|
|
|
|
14
|
|
Kids Foot
Locker
|
|
|
394
|
|
|
|
11
|
|
|
|
15
|
|
|
|
390
|
|
|
|
23
|
|
WSS
|
|
|
115
|
|
|
|
28
|
|
|
|
2
|
|
|
|
141
|
|
|
|
—
|
|
Footaction
|
|
|
2
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
North
America
|
|
|
1,830
|
|
|
|
48
|
|
|
|
134
|
|
|
|
1,744
|
|
|
|
93
|
|
Foot Locker
Europe (1)
|
|
|
644
|
|
|
|
25
|
|
|
|
32
|
|
|
|
637
|
|
|
|
30
|
|
Sidestep
|
|
|
78
|
|
|
|
—
|
|
|
|
78
|
|
|
|
—
|
|
|
|
—
|
|
EMEA
|
|
|
722
|
|
|
|
25
|
|
|
|
110
|
|
|
|
637
|
|
|
|
30
|
|
Foot Locker
Pacific
|
|
|
94
|
|
|
|
5
|
|
|
|
1
|
|
|
|
98
|
|
|
|
13
|
|
Foot Locker
Asia
|
|
|
33
|
|
|
|
—
|
|
|
|
20
|
|
|
|
13
|
|
|
|
—
|
|
atmos
|
|
|
35
|
|
|
|
1
|
|
|
|
5
|
|
|
|
31
|
|
|
|
—
|
|
Asia Pacific
|
|
|
162
|
|
|
|
6
|
|
|
|
26
|
|
|
|
142
|
|
|
|
13
|
|
Total
|
|
|
2,714
|
|
|
|
79
|
|
|
|
270
|
|
|
|
2,523
|
|
|
|
136
|
|
Selling and gross
square footage are as follows:
|
|
|
|
January 28,
2023
|
|
|
February 3,
2024
|
|
(in
thousands)
|
|
Selling
|
|
|
Gross
|
|
|
Selling
|
|
|
Gross
|
|
Foot Locker
U.S.
|
|
|
2,362
|
|
|
|
4,044
|
|
|
|
2,401
|
|
|
|
4,080
|
|
Foot Locker
Canada
|
|
|
249
|
|
|
|
412
|
|
|
|
259
|
|
|
|
426
|
|
Champs
Sports
|
|
|
1,792
|
|
|
|
2,809
|
|
|
|
1,539
|
|
|
|
2,421
|
|
Kids Foot
Locker
|
|
|
756
|
|
|
|
1,272
|
|
|
|
780
|
|
|
|
1,304
|
|
WSS
|
|
|
1,138
|
|
|
|
1,435
|
|
|
|
1,458
|
|
|
|
1,757
|
|
Footaction
|
|
|
6
|
|
|
|
11
|
|
|
|
3
|
|
|
|
6
|
|
North
America
|
|
|
6,303
|
|
|
|
9,983
|
|
|
|
6,440
|
|
|
|
9,994
|
|
Foot Locker
Europe (1)
|
|
|
1,147
|
|
|
|
2,363
|
|
|
|
1,208
|
|
|
|
2,470
|
|
Sidestep
|
|
|
97
|
|
|
|
186
|
|
|
|
—
|
|
|
|
—
|
|
EMEA
|
|
|
1,244
|
|
|
|
2,549
|
|
|
|
1,208
|
|
|
|
2,470
|
|
Foot Locker
Pacific
|
|
|
213
|
|
|
|
325
|
|
|
|
243
|
|
|
|
366
|
|
Foot Locker
Asia
|
|
|
126
|
|
|
|
233
|
|
|
|
52
|
|
|
|
98
|
|
atmos
|
|
|
37
|
|
|
|
63
|
|
|
|
28
|
|
|
|
48
|
|
Asia Pacific
|
|
|
376
|
|
|
|
621
|
|
|
|
323
|
|
|
|
512
|
|
Total
|
|
|
7,923
|
|
|
|
13,153
|
|
|
|
7,971
|
|
|
|
12,976
|
|
|
(1) Includes 16
and 13 Kids Foot Locker stores, and the related square footage,
operating in Europe for January 28, 2023 and February 3, 2024,
respectively.
|
Contacts:
|
Kate
Fitzsimons
Investor
Relations
ir@footlocker.com
Dana Yacyk
Corporate
Communications
mediarelations@footlocker.com
|
View original
content:https://www.prnewswire.com/news-releases/foot-locker-inc-reports-fourth-quarter-2023-results-issues-2024-outlook-302080792.html
SOURCE Foot Locker IR