FOOT LOCKER, INC. REPORTS PRELIMINARY FIRST QUARTER 2025 FINANCIAL RESULTS
Preliminary First Quarter Results
- Comparable sales decreased by 2.6% from the prior-year period, with comparable sales in the
North America region decreasing by 0.5%. - Net loss is expected to be
$363 million , as compared with net income of$8 million in the corresponding prior-year period. On a non-GAAP basis, net loss is expected to be$6 million for the first quarter, as compared with net income of$21 million in the corresponding prior-year period. - First quarter loss per share is expected to be
$3.81 , as compared with earnings per share of$0.09 in the first quarter of 2024. Non-GAAP loss is expected to be$0.07 per share in the first quarter, as compared with non-GAAP earnings per share of$0.22 in the corresponding prior-year period. - Non-GAAP net loss and net loss per share exclude non-cash impairment charges totaling
$276 million and primarily reflect a$140 million charge related to a tradename and a goodwill impairment charge of$110 million . Additionally, we recorded a full valuation allowance on the Company's deferred tax assets and deferred tax costs related to the Company's European business totaling$124 million , which is excluded from our non-GAAP results.
See the tables below for the reconciliation of Non-GAAP measures and details regarding the impairment charges and valuation allowance.
Agreement to be Acquired by DICK'S
In a separate press release issued today,
The transaction is subject to
About
Cautionary Note Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified as those that may predict, forecast, indicate or imply future results or performance and by forward-looking words such as "believe", "anticipate", "expect", "estimate", "predict", "intend", "plan", "project", "goal", "will", "will be", "will continue", "will result", "could", "may", "might" or any variations of such words or other words with similar meanings. Any statements about DICK'S Sporting Goods, Inc.'s ("DICK'S Sporting Goods"),
Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to, current macroeconomic conditions, including prolonged inflationary pressures, potential changes to international trade relations, geopolitical conflicts and adverse changes in consumer disposable income; supply chain constraints, delays and disruptions; fluctuations in product costs and availability due to tariffs, currency exchange rate fluctuations, fuel price uncertainty and labor shortages; changes in consumer demand for products in certain categories and consumer lifestyle changes; intense competition in the sporting goods industry; the overall success of DICK'S Sporting Goods',
For additional information on these and other factors that could affect DICK'S Sporting Goods' or
Additional Information about the Proposed Transaction and Where to Find It
In connection with the Transaction, DICK'S Sporting Goods intends to file with the
Participants in the Solicitation
DICK'S Sporting Goods,
Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the
Non-GAAP Financial Measures
In addition to reporting the Company's financial results reported in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP financial measures that will be presented will exclude (i) gains or losses related to our minority investments, (ii) impairments and other, and (iii) certain tax matters that we believe are nonrecurring or unusual in nature.
Certain financial measures are identified as non-GAAP, such as sales changes excluding foreign currency fluctuations, adjusted income before income taxes, adjusted net income, and adjusted diluted earnings per share. We present certain amounts as excluding the effects of foreign currency fluctuations, which are also considered non-GAAP measures. Where amounts are expressed as excluding the effects of foreign currency fluctuations, such changes are determined by translating all amounts in both years using the prior-year average foreign exchange rates. Presenting amounts on a constant currency basis is useful to investors because it enables them to better understand the changes in our business that are not related to currency movements.
These non-GAAP measures are presented because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core business or affect comparability. In addition, these non-GAAP measures are useful in assessing our progress in achieving our long-term financial objectives and are consistent with how executive compensation is determined.
We estimate the tax effect of all non-GAAP adjustments by applying a marginal tax rate to each item. The income tax items represent the discrete amount that affected the period. The non-GAAP financial information is provided in addition, and not as an alternative, to our reported results prepared in accordance with GAAP.
Contacts: |
Investor Relations
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Non-GAAP Reconciliation |
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(preliminary and unaudited) |
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Periods ended May 3, 2025 and |
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(In millions, except per share amounts) |
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The various non-GAAP adjustments are summarized in the tables below. |
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Reconciliation of GAAP to non-GAAP results: |
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First Quarter |
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2025 |
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2024 |
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Pre-tax (loss) income: |
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(Loss) income before income taxes |
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$ |
(270) |
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$ |
13 |
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Pre-tax adjustments excluded from GAAP: |
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Impairment and other (1) |
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276 |
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14 |
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Other income / expense (2) |
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(4) |
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2 |
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Adjusted income before income taxes (non-GAAP) |
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$ |
2 |
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$ |
29 |
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After-tax (loss) income: |
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Net (loss) income |
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$ |
(363) |
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$ |
8 |
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After-tax adjustments excluded from GAAP: |
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Impairment and other, net of income tax benefit of |
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237 |
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11 |
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Other income / expense, net of income tax expense of $- and $- million, respectively (2) |
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(4) |
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2 |
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Tax valuation allowance and deferred tax cost write off (3) |
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124 |
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— |
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Adjusted net (loss) income (non-GAAP) |
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$ |
(6) |
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$ |
21 |
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First Quarter |
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2025 |
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2024 |
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Earnings per share: |
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Diluted (loss) earnings per share |
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$ |
(3.81) |
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$ |
0.09 |
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Diluted per share amounts excluded from GAAP: |
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Impairment and other (1) |
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2.48 |
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0.11 |
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Other income / expense (2) |
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(0.05) |
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0.02 |
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Tax valuation allowance and deferred tax cost write off (3) |
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1.31 |
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— |
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Adjusted diluted (loss) earnings per share (non-GAAP) |
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$ |
(0.07) |
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$ |
0.22 |
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Notes on Non-GAAP Adjustments:
(1) |
Included in the first quarter of 2025 impairment and other caption were non-cash impairment charges of
For the first quarter of 2024, impairment and other included a loss accrual for legal claims of
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(2) |
For the first quarter of 2025, other expense / income included a
For the first quarter of 2024, other income / expense consisted of |
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(3) |
In the first quarter of 2025, it was determined that due to recent weakness in market conditions, the ability to utilize the entirety of our European deferred tax asset was less likely than prior periods. Accordingly, the Company recorded a |
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SOURCE Foot Locker IR