When adjusting for currency exchange rate variations, total sales for Q4 fell by 4.6%, Foot Locker said.
The retailer witnessed a 2.6% rise in comparable store sales, with global Foot Locker and Kids Foot Locker experiencing a combined increase of 3.6%.
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Champs Sports business also saw a positive trend, posting a 1.8% growth in comparable sales, marking its second consecutive quarter of growth.
Foot Locker president and chief executive officer Mary Dillon said: “We delivered fourth quarter results above our previously revised expectations, as our investments and execution drove positive comparable sales and meaningful gross margin improvement compared to the prior year.”
Key metrics from Foot Locker’s Q4 FY24
Foot Locker’s net earnings from ongoing operations for Q4 FY24 was $55m, a significant turnaround from the $389m net loss reported in the same period a year ago.
On an adjusted basis, excluding certain items, net earnings from continuing operations reached $82m, up from $33m in the same period last year.
As of 1 February 2025, Foot Locker’s merchandise inventory levels stood at $1.52bn, a modest increase of 1.1% over last year’s fourth quarter.
Fiscal 2024 performance
For the entire fiscal year 2024, Foot Locker reported net sales of $7.97bn, down from $8.15bn in the previous fiscal year.
The company’s operating income decreased to $103m from $142m in fiscal 2023.
The company recorded a net income of $12m for fiscal year 2024 compared to a net loss of $330m in the prior year, resulting in diluted earnings per share of $0.19 against a loss per share of $3.51 in fiscal year 2023.
“Reflecting on 2024 overall, we made significant progress in elevating our in-store experience with our new Reimagined doors and store refresh programme, enhancing our digital and mobile capabilities, expanding engagement with our FLX Rewards Program, and leaning into brand building through compelling campaigns and partnerships. Our return to positive comparable sales growth, gross margin expansion, and positive free cash flow in fiscal 2024 serve as proof points that our Lace Up Plan is working,” Mary Dillon said.
Outlook for fiscal 2025
Looking ahead to fiscal year 2025, Foot Locker anticipates sales to vary between a decrease of 1.0% and an increase of 0.5%, with comparable store sales expected to grow between 1.0% and 2.5%.
The gross margin is projected to range between 29.3% and 29.7%, while earnings before interest and taxes (EBIT) margin is estimated to be between 2.6% and 3.1%.
The company also forecasts a reduction in store count by approximately 4%.
Dillon continued: “Looking ahead, we will continue to prioritise our customer-facing investments, keep our inventories controlled, and manage our expense base with discipline to improve our profitability.
