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Foot Locker Inc. (FL-5.17%) has submitted its annual report on Form 10-K filing for the fiscal year ended February 1, 2025.
The filing reports a decrease in sales to $7,971 million from $8,154 million in the previous year, a decline attributed to strategic store closures and macroeconomic challenges.
Comparable sales increased by 1.4% with the direct-to-customers channel showing a 6.2% increase, while store sales increased by 0.4%.
Gross margin improved to 28.9% from 27.7% in the previous year, driven by decreased promotions and occupancy rate leverage.
Selling, general, and administrative expenses increased to $1,920 million from $1,852 million, primarily due to investments in technology and brand building.
Net income attributable to Foot Locker Inc. was $12 million, compared to a loss of $330 million in the previous year.
Cash and cash equivalents at year-end were $401 million, up from $297 million the previous year, with free cash flow generation of $105 million.
The company recorded impairment and other charges totaling $97 million, including costs related to store closures and the relocation of its headquarters.
Foot Locker continues to focus on its omni-channel capabilities, with plans for further expansion of its FLX Rewards loyalty program and the opening of new 'Reimagined' concept stores.
The filing also highlights the company's dependence on key suppliers, with 59% of merchandise purchased from Nike, Inc. in 2024.
Foot Locker's credit facility remains at $600 million, with no borrowings outstanding as of February 1, 2025.
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. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.