Foot Locker Reports Loss and Cuts Forecasts as Consumer Spending Declines

The retailer cites soft demand for Nike products, increased promotions, and economic pressures for its disappointing third-quarter results and reduced outlook.

Foot Locker reported a $33 million loss in Q3 2024, compared to a $28 million profit in the same quarter last year, with total sales falling 1.4% to $1.96 billion.
The company missed Wall Street expectations for revenue and earnings per share, with adjusted EPS at 33 cents versus the expected 41 cents.
Weaker demand for Nike products, which account for 60% of Foot Locker's sales, and a highly promotional retail environment were highlighted as key challenges.
Foot Locker revised its full-year sales forecast to a decline of 1% to 1.5%, down from previous guidance of a potential 1% increase, and lowered its adjusted EPS expectations to $1.20-$1.30.
CEO Mary Dillon expressed optimism about long-term strategies, including store refurbishments and partnerships with Nike's new leadership, despite ongoing economic and market pressures.