Wed, Sep 11, 8:12 PM (100 days ago)
In the second quarter of 2024, Foot Locker reported total revenue of $1,900 million, a slight increase of 1.9% year-over-year, while year-to-date revenue decreased by 0.5%. The company faced challenges with a net loss of $12 million, compared to a loss of $5 million in the prior year, influenced by impairment charges related to exiting underperforming markets in South Korea and Scandinavia, totaling $9 million. Gross margin improved to 27.6% due to reduced occupancy costs, despite a decline in merchandise margins. Selling, general, and administrative (SG&A) expenses rose by 7.7% to $476 million, attributed to technology investments and inflationary pressures. Cash flow from operations turned positive at $126 million, a significant improvement from a negative position in the previous year, aided by better inventory management. The company amended its $600 million revolving credit facility to extend its maturity to 2029 and increase borrowing capacity. Future operations may be impacted by ongoing strategic shifts, including store closures and a planned headquarters relocation to Florida. Despite current uncertainties, the long-term outlook remains focused on enhancing profitability and customer engagement through initiatives like the FLX Rewards program.