Foot Locker, Inc.

Fourth-quarter total sales fell 5.8%, mainly because of the prior-year 53rd week, foreign exchange headwinds, and store closures. Total comp sales increased 2.6%, with North America comp up 3.6%; global Foot Locker and Kids Foot Locker comped up 3.6%, Champs Sports comped up 1.8%, WSS comped down 3.3%, Europe comped up 1.9%, Asia Pacific comped down 7.6%, and Atmos comped down 8.7%. Gross margin expanded 300 basis points to 29.6%, SG&A rate improved to 22.3%, continuing operations EPS was $0.57, and non-GAAP EPS was $0.86. For fiscal 2024, the company generated $105 million of free cash flow, ended with $401 million of cash and $446 million of debt, and reported inventory up 1.1% year over year. For 2025, Foot Locker guided to non-GAAP EPS of $1.35 to $1.65, total sales from down 1% to up 0.5%, comps of +1% to +2.5%, gross margin of 29.3% to 29.7%, SG&A rate of 24.3% to 24.5%, about $300 million of adjusted capex, roughly 20 new stores, about 110 closures, and about $60 million to $70 million of additional cost savings. Management also said first-half results should be closer to the low end of guidance, with the second half closer to the high end, and that Q2 will benefit from lapping a roughly $0.09 FLX charge from last year.

Mary Dillon framed 2024 as meaningful progress under the Lace Up Plan, emphasizing three straight quarters of positive comp growth, gross margin expansion, positive free cash flow, and stronger store/digital/loyalty execution. She highlighted the Reimagine concept, the Refresh program, FLX Rewards traction, and the NBA All-Star activation as evidence that the strategy is working. Her tone was confident but cautious: she said February consumer behavior turned more cautious and that the company is slowing some technology investment while prioritizing customer-facing projects with better returns.

Mike Baughn focused on the drivers behind the quarter and the 2025 plan. He cited 300 bps gross margin expansion to 29.6%, a 22.3% SG&A rate, $35 million of total cost savings in Q4, $100 million of savings in fiscal 2024, $401 million of cash, $446 million of debt, and $105 million of free cash flow for the year. For 2025, he said the company expects $60 million to $70 million of additional savings, about $300 million of adjusted capex, and continued free-cash-flow generation while shifting spend toward Reimagine and Refresh projects and delaying some back-office tech investments.

Analysts pressed management on softer quarter-to-date trends, particularly February consumer caution, Nike’s promotional activity, tariffs, SG&A leverage, and the pace of store and tech investment. Management said demand has been strongest around clear calls to action like All-Star, holidays, and key product launches, while the in-between periods have been choppier; for tariffs, it said direct exposure is modest and China exposure in private label is only about half of that business. On Nike, management said the partnership has reset, allocation growth returned in Q4, and it expects sequential top-line and gross margin recovery, while still balancing broader brand diversification. On SG&A and capex, it said 2025 still includes leverage and strong returns, but spending is being re-phased toward consumer-facing investments and the healthiest return projects.