Foot Locker Posts Mixed Q2 2025 Results Ahead of DICK’S Sporting Goods Merger

Foot Locker, a leading global retailer in athletic footwear and apparel, released its second quarter 2025 financials as it prepares for a major transition following its pending acquisition by DICK’S Sporting Goods.

Headlines from Q2 2025

• Total sales: Decreased 2.4% year-over-year to $1,851 million, from $1,896 million in Q2 2024 (constant currencies down 3.7%).

• Comparable sales: Declined 2.0% globally, but North America comps rose 1.4%—an improvement over Q1 and a positive sign for the US banners.

• Brand highlight: Champs Sports achieved its fourth straight quarter of positive comp sales (+2.0%), while Kids Foot Locker saw comps up 7.6%, and Foot Locker stores grew 1.8%.

• WSS experienced an 8.1% decline in comps, reflecting tougher international traffic trends (store brand breakdown).

• International headwinds remained: EMEA (Europe, Middle East, Africa) comparable sales fell 11.4%; Asia Pacific declined 6.4%.

CEO Statement & Strategy

Mary Dillon, CEO, said:

“In the second quarter, we built sequential momentum and delivered positive North American comparable sales, led by our Foot Locker, Kids Foot Locker, and Champs Sports banners, including a good start to Back-to-School in July. At the same time, our results reflect a challenging operating environment and soft store traffic trends, particularly in our WSS and international businesses. Our team continued to execute our Lace Up Plan, elevating customer experience, deepening brand partnerships, modernizing through Refresh and Reimagined stores, enhancing digital platforms, and growing global engagement through FLX Rewards.”

Profitability & Margins

• Gross margin: Down 50 basis points year-over-year, mainly due to lower merchandise margin; occupancy costs flat.

• SG&A as % of sales: Increased by 20bps, as fixed costs became harder to absorb despite a 1.7% reduction in absolute SG&A dollars due to cost control and tech investment.

• GAAP net loss: $38 million ($0.39 per share) vs. $12 million ($0.13 per share) in Q2 2024.

• Non-GAAP net loss: $27 million ($0.27 loss per share) vs. $4 million ($0.05 loss per share) a year ago.

Store & Digital Platform Update

• Stores: 2,354 in 20 countries (as of August 2, 2025); 243 licensed stores in Middle East/Europe/Asia.

• Openings/Closings: Q2 saw 2 new store openings, 11 closures, 14 remodels/relocations, and 52 “refreshed” to current design standards (including new Champs Sports Reimagined concept stores in Tampa and Portland).

• Digital/loyalty: Enhanced FLX Rewards Program launched in Europe, part of the ongoing omnichannel strategy.

Inventory, Cash, and Financial Health

• Inventory: $1,709 million, up 3.7% YoY—reflecting fall product pull-forwards and modest FX effects.

• Cash/equivalents: $299 million

• Total debt: $444 million

The DICK’S Sporting Goods Acquisition: Final Steps

Following shareholder approval (99% in favor) and all regulatory clearances, Foot Locker’s $2.4 billion merger with DICK’S is expected to close on September 8, 2025. The deal combines nearly 2,400 Foot Locker stores with DICK’S 800-unit footprint, forming a $21 billion retail giant primed for scale with Nike, improved vendor partnerships, and broader international reach.

Mary Dillon concluded:

“We are now one step closer to joining forces with DICK’S and even better positioning the business to expand sneaker culture, elevate the omnichannel experience for customers and brand partners, and enhance our industry position.”

Due to the pending merger, Foot Locker will not offer financial guidance or hold an investor call for this quarter.

For Investors and Media

Full tables, including banner breakdowns, constant currency results, GAAP/non-GAAP reconciliations, and store counts, are available in the official release.