Footlocker (FL) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 194.6
• Beta (1Y): 1.34
• Revenue Growth: -2.20%
• EPS Growth: N/A
• Country: US
• Employees: 13,140
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Retail
• EPS (TTM): 0.86
• Shares Outstanding: 94,954,370
• 10 Day Avg. Volume: 4,458,646
• 30 Day Avg. Volume: 4,942,863
• PEG Ratio: 0.90
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.86
• Enterprise Value/Market Cap: 2.88
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: -6.79
• 1Y Price Target: $20.50
• Price Target Upside: -14.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

Foot Locker faces significant challenges in profitability and valuation, reflected in a low financial performance score and stretched P/E ratio. Although the earnings call provided some positive insights, technical indicators suggest caution. Recent corporate events introduce both opportunities and risks. Overall, the stock is under pressure but holds potential for recovery if strategic initiatives succeed.

Positive Factors

Acquisition

FL announces acquisition by DKS at a ~90% premium.

Financial Performance

The transaction is expected to be accretive to EPS in the first full fiscal year post-close and sees $100-$125M in cost synergies in the medium-term through procurement and direct sourcing efficiencies.

Market Position

The acquisition makes the combined company more important to its key vendors, which could provide better terms or access to product.

Negative Factors

Earnings

FL pre-announced Q1 results coming below expectations with softer than expected traffic trends globally and a non-GAAP net loss.

Leadership

Underwhelming guidance and past performance may lead to changes in the company's executive leadership.

Sales Performance

Estimates for future earnings have been significantly lowered due to weaker sales and higher tariffs.

Footlocker Business Overview & Revenue Model

Company Description

Foot Locker, Inc., through its subsidiaries, operates as an athletic footwear and apparel retailer. The company engages in the retail of athletic footwear, apparel, accessories, equipment, and team licensed merchandise under the Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, atmos, WSS, Footaction, and Sidestep brand names. As of January 29, 2022, it operated 2,858 retail stores in 28 countries across the United States, Canada, Europe, Australia, New Zealand, and Asia; and 142 franchised Foot Locker stores located in the Middle East and Asia. The company also offers its products through various e-commerce sites and mobile apps. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York.

How the Company Makes Money

Foot Locker makes money primarily through the sale of athletic footwear and apparel. The company's revenue model is based on retail sales across its physical stores and online platforms. Key revenue streams include direct sales from its branded stores and e-commerce websites. Foot Locker also benefits from strategic partnerships with major sportswear brands, which allow them to offer exclusive products and limited-edition releases that drive consumer demand. Additionally, the company leverages its global presence to capitalize on emerging markets and expand its customer base, contributing to its overall earnings.

Footlocker Financial Statement Overview

Summary

Foot Locker's financial performance is mixed, with a stable balance sheet but declining income statement metrics. The income statement shows a sharp decline in net profit margin to 0.15%, indicating significant challenges in profitability. However, cash flow has improved, with free cash flow turning positive and operating cash flow showing strength. Overall, financial stability is moderate but profitability remains a significant concern.

Income Statement

Foot Locker's income statement reveals a concerning trend in revenue and profitability. The gross profit margin is 29.07% for the latest fiscal year, but net profit margin has fallen sharply to 0.15% due to a significant decrease in net income. Revenue has declined over the past two years, indicating challenges in sales growth. The EBIT margin has decreased to 1.29%, reflecting pressure on operational efficiency. EBITDA margin is 4.86%, also showing a decline from previous years. These trends suggest weakening profitability and growth prospects.

Balance Sheet

The balance sheet indicates a balanced financial structure with a debt-to-equity ratio of 0.96, which is reasonable for the retail industry. Return on Equity (ROE) is low at 0.41%, reflecting reduced profitability. The equity ratio stands at 43.11%, showing a stable base of equity financing. Overall, the balance sheet suggests moderate financial stability but highlights the need to improve returns on equity.

Cash Flow

Foot Locker's cash flow statement shows improvement in free cash flow, which grew from negative to $105 million, indicating better cash management. The operating cash flow to net income ratio is 28.75, reflecting strong cash flow generation despite low net income. The free cash flow to net income ratio is 8.75, suggesting that while cash flow is improving, profitability needs attention. Overall, the cash flow situation has improved but remains a concern due to low profitability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
7.99B	8.17B	8.76B	8.96B	7.55B
	Gross Profit
2.32B	2.27B	2.80B	3.08B	2.18B
	EBIT
103.00M	142.00M	581.00M	1.43B	537.00M
	EBITDA
277.00M	-200.00M	859.00M	1.25B	606.00M
	Net Income Common Stockholders
12.00M	-330.00M	342.00M	893.00M	323.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
401.00M	297.00M	536.00M	804.00M	1.68B
	Total Assets
6.75B	6.87B	7.91B	8.14B	7.04B
	Total Debt
2.78B	2.94B	3.23B	3.39B	3.19B
	Net Debt
2.38B	2.65B	2.69B	2.59B	1.51B
	Total Liabilities
3.84B	3.98B	4.61B	4.89B	4.26B
	Stockholders Equity
2.91B	2.89B	3.29B	3.24B	2.78B
Cash Flow		Free Cash Flow
105.00M	-151.00M	-112.00M	457.00M	903.00M
	Operating Cash Flow
345.00M	91.00M	173.00M	666.00M	1.06B
	Investing Cash Flow
-240.00M	-222.00M	-162.00M	-1.38B	-168.00M
	Financing Cash Flow
-7.00M	-120.00M	-279.00M	-152.00M	-126.00M

Footlocker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FL, the sentiment is Positive. The current price of 23.85 is above the 20-day moving average (MA) of 13.44, above the 50-day MA of 14.03, and above the 200-day MA of 21.40, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 81.90 is Negative, neither overbought nor oversold. The STOCH value of 84.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FL.

Footlocker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	81 Outperform	$2.38B	8.12	25.15%	―	-1.35%	-39.06%
SHOO	76 Outperform	$1.90B	11.28	19.51%	3.16%	10.17%	-4.71%
AEO	73 Outperform	$2.05B	7.10	18.80%	4.17%	1.27%	96.32%
Sector *	61 Neutral	$6.99B	11.27	2.81%	3.90%	2.61%	-21.77%
KSS	58 Neutral	$952.93M	8.60	2.83%	19.41%	-7.18%	-65.92%
FL	56 Neutral	$1.22B	194.63	0.62%	―	-2.20%	―
SPB	54 Neutral	$1.63B	31.09	2.79%	2.76%	1.46%	-95.70%

Footlocker Corporate Events

Foot Locker Announces Merger with DICK’S Sporting Goods

On May 15, 2025, Foot Locker, Inc. entered into a merger agreement with DICK’S Sporting Goods, Inc., where Foot Locker will be acquired by DICK’S, with the merger subject to approval by shareholders and regulatory conditions. The merger will result in Foot Locker’s shares being delisted from the NYSE, and shareholders will have the option to receive cash or shares of DICK’S stock. The agreement includes provisions for the treatment of equity awards and conditions for closing, such as shareholder approval and regulatory clearances. Termination fees are outlined should the merger not proceed under specific circumstances.

The most recent analyst rating on (FL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Foot Locker stock, see the FL Stock Forecast page.

Spark’s Take on FL Stock

According to Spark, TipRanks’ AI Analyst, FL is a Neutral.

Foot Locker’s overall stock score reflects moderate financial stability with significant profitability challenges. While the earnings call indicated positive strategic progress, the high P/E ratio and lack of dividend yield are concerns. The technical analysis shows bearish trends, offset by potential strategic gains from corporate events such as the merger and leadership changes. The stock faces notable risks but also opportunities for improvement.

To see Spark’s full report on FL stock, click here.

Foot Locker Announces Merger with DICK’S Sporting Goods

On May 15, 2025, Foot Locker and DICK’S Sporting Goods announced a definitive merger agreement under which DICK’S will acquire Foot Locker for approximately $2.4 billion in equity value. This transaction, subject to shareholder and regulatory approval, is expected to close in the second half of 2025. Additionally, Foot Locker reported preliminary financial results for the first quarter of 2025, showing a net loss of $363 million compared to a net income of $8 million in the previous year. The company experienced a 2.6% decrease in comparable sales, with North America sales down by 0.5%, and attributed these results to softer global traffic trends and an uncertain macroeconomic environment.

The most recent analyst rating on (FL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Foot Locker stock, see the FL Stock Forecast page.

Spark’s Take on FL Stock

According to Spark, TipRanks’ AI Analyst, FL is a Neutral.

Foot Locker’s overall score reflects a balance of moderate financial stability and bearish technical indicators. While the earnings call highlighted positive sales and margin improvements, the financial performance reveals significant profitability challenges. The stock’s valuation appears stretched, with a high P/E ratio and no dividend yield. Technical analysis shows bearish trends, though new leadership offers potential strategic gains. Overall, the stock faces notable risks but also opportunities for improvement.

To see Spark’s full report on FL stock, click here.

Foot Locker Appoints Franklin Bracken as President

On March 25, 2025, Foot Locker, Inc. announced the appointment of Franklin R. Bracken as President, effective March 26, 2025. Bracken, who has been with the company since 2010, will continue to report to CEO Mary Dillon and will work to accelerate the company’s Lace Up Plan, focusing on enhancing the omni-retail experience and creating long-term shareholder value. Bracken’s extensive experience in brand management and retail operations positions him to further strengthen Foot Locker’s market position and drive meaningful business results.

Foot Locker Reports Q4 2024 Financial Results

Foot Locker, Inc. reported its financial results for the fourth quarter of 2024, showing a 5.8% decrease in total sales year-over-year, but a 2.6% increase in comparable sales. The company achieved a gross margin expansion of 300 basis points and a significant improvement in net income from continuing operations compared to the previous year. Foot Locker completed 160 store refreshes in the quarter and issued a cautious outlook for 2025, anticipating continued consumer and promotional pressures. The company plans to focus on customer-facing investments and brand partnerships to drive growth and shareholder value.