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Foot Locker Inc. (FL+1.35%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing includes financial statements for the quarter, showing a decrease in sales to $1,958 million from $1,986 million in the same quarter the previous year. The decrease is attributed to strategic store closures and challenging market conditions.
Cost of sales for the quarter was $1,378 million, representing 70.4% of sales, compared to 72.7% in the same quarter of the previous year. This decrease in cost ratio is due to improved merchandise margins.
The company reported a gross margin of 29.6% for the quarter, compared to 27.3% in the previous year, with the improvement attributed to less promotional activity.
Selling, general, and administrative expenses increased to $482 million from $446 million, primarily due to investments in technology and brand-building.
Net loss for the quarter was $33 million, compared to a net income of $28 million in the previous year. The loss was impacted by impairment charges and strategic reorganization costs.
Cash provided by operating activities was $98 million, while cash used in investing and financing activities was $185 million and $6 million, respectively.
Foot Locker had a working capital of $2,386 million as of November 2, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including an amended credit agreement extending the maturity date to June 20, 2029.
Foot Locker does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on improving profitability through strategic store closures and operational efficiencies while expanding its digital and omnichannel capabilities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Foot Locker Inc. quarterly 10-Q report dated December 11, 2024. To report an error, please email earnings@qz.com.