• Total Sales Decreased 9.9%; Comparable-Store Sales
Decreased 9.4%
• EPS Loss of $0.05 and Non-GAAP EPS Gain of $0.04
• Lowering 2023 Sales and
Earnings Guidance
• Pausing Dividend to Enhance
Flexibility
• Reiterating Commitment to Lace Up
Plan
NEW
YORK, Aug. 23, 2023 /PRNewswire/ -- Foot Locker,
Inc. (NYSE: FL), the New
York-based specialty athletic retailer, today reported
financial results for its second quarter ended July 29, 2023.
Mary Dillon, President and Chief
Executive Officer, said, "Our second quarter was broadly in line
with our expectations, despite the still-tough consumer backdrop.
However, we did see a softening in trends in July and are adjusting
our 2023 outlook to allow us to best compete for price-sensitive
consumers, while still leaning into the strategic investments that
drive our Lace Up plan. Importantly, we are continuing to make
progress on our inventory levels and look to best position the
business for the upcoming holiday season and into 2024."
Ms. Dillon continued, "We remain committed to our Lace Up plan
as introduced at our March 2023
Investor Day, and we are encouraged by the progress we are making
against our strategic priorities heading towards the holiday
season. To ensure that we have the flexibility to continue to
fund our strategic investments appropriately, we are pausing our
quarterly cash dividend beyond our Board's recently-approved
October payout. We intend to update the market on our
go-forward capital allocation plans and the timing around our
longer-term financial targets when we report fourth quarter
results."
Second Quarter Results
- Total sales decreased by 9.9%, to $1,861
million, as compared with sales of $2,065 million in the second quarter of 2022.
Excluding the effect of foreign exchange rate fluctuations, total
sales for the second quarter decreased by 10.2%.
- Comparable-store sales decreased by 9.4%, driven by ongoing
consumer softness, changing vendor mix, and the repositioning of
Champs Sports.
Please refer to the Sales by Banner table below for detailed
sales performance by banner and region
- Gross margin declined by 460 basis points as compared with the
prior-year period, driven by an increase in promotional activity,
which included higher markdowns, as well as occupancy deleverage
and higher shrink.
- SG&A increased by 190 basis points as a percentage of sales
compared with the prior-year period, with savings from the cost
optimization program more than offset by underlying deleverage on
the sales decline, inflation, and investments in front-line wages
and technology.
- The Company had a loss of $5
million in the second quarter, as compared with net income
of $94 million in the corresponding
prior-year period. On a Non-GAAP basis, net income was $4 million, as compared with $105 million in the corresponding prior-year
period.
- For the quarter, the Company had a net loss of $0.05 per share, as compared with income of
$0.99 per share in the second quarter
of 2022. Non-GAAP earnings per share decreased to $0.04 per share, as compared with $1.10 per share in the corresponding prior-year
period.
Balance Sheet
At quarter-end, the Company's cash and cash equivalents
totaled $180 million, while debt on its balance sheet
was $450 million.
As of July 29, 2023, the Company's merchandise inventories
were $1.8 billion, 11% higher than at the end of the second
quarter last year and sequentially improved from the 25% increase
at the end of the first quarter of 2023.
Dividend and Share Repurchases
During the second quarter of 2023, the Company paid a quarterly
dividend of $0.40 per share for a total of $37 million. The Company did not repurchase
any shares during the second quarter.
To increase balance sheet flexibility in support of longer-term
strategic priorities, the company is pausing its quarterly cash
dividends beyond its recently-approved payout on October 27 to holders of record on October 13.
Store Base Update
During the second quarter, the Company opened 15 new stores,
remodeled or relocated 16 stores, and closed 108 stores.
As of July 29, 2023, the Company
operated 2,599 stores in 26 countries in North America,
Europe, Asia, Australia, and New
Zealand. In addition, 184 franchised stores were
operating in the Middle East and Asia.
2023 Financial Outlook
Fiscal year 2023 represents the 53 weeks ending February 3, 2024. The Company's full year
2023 outlook, which includes the 53rd week, is
summarized in the table below.
Metric
|
Prior
Guidance
|
Updated
|
Commentary
|
Sales Change
|
Down 6.5% to
8.0%
|
Down 8.0% to
9.0%
|
Including ~1% from the
extra week
|
Comparable Sales
Change
|
Down 7.5% to
9.0%
|
Down 9.0% to
10.0%
|
Continuation of
year-to-date trends at mid-point
|
Square Footage
Change
|
Down
~4%
|
|
|
Licensing
Revenue
|
~$20
million
|
~$17
million
|
|
Gross Margin
|
28.6% to
28.8%
|
27.8% to
28.0%
|
More aggressive
markdowns
|
SG&A
Rate
|
22.4% to
22.6%
|
22.7% to
22.9%
|
|
D&A
|
~$205
million
|
~$203
million
|
|
Interest
|
~$16 million
|
~$12
million
|
|
Non-GAAP Tax
Rate
|
32.9% to
33.1%
|
~ 33.0%
|
|
Non-GAAP EPS
|
$2.00-$2.25
|
$1.30-$1.50
|
Includes $0.15 from the
extra week
|
Adj. Capital
Expenditures*
|
~$305
million
|
~$290
million
|
Favorable project
pricing and timing
|
* Adjusted Capex
Includes Capitalized Technology Expense
|
The Company provides earnings guidance only on a non-GAAP basis
and does not provide a reconciliation of the Company's
forward-looking capital expenditures and diluted earnings per share
guidance to the most directly comparable GAAP financial measures
because of the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliations.
Conference Call and Webcast
The Company is hosting a
live conference call at 10:00 a.m. ET
today, August 23, 2023, to review
these results and provide an update on the business. An investor
presentation will be available under the Investor Relations section
of the Company's corporate website before the start of the
conference call. This conference call may be accessed live by
calling toll-free 1-844-701-1163 or international toll
1-412-317-5490, or via the Investor Relations section of
footlocker-inc.com. Please log on to the website 15 minutes prior
to the call to register. An archived replay of the conference call
can be accessed approximately one hour following the end of the
call at 1-877-344-7529 in the U.S., 1-855-669-9658 in Canada, and 1-412-317-0088 internationally
with passcode 7255593 through September 6,
2023. A replay of the call will also be available via
webcast from footlocker-inc.com.
Disclosure Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Other than statements
of historical facts, all statements which address activities,
events, or developments that the Company anticipates will or may
occur in the future, including, but not limited to, such things as
future capital expenditures, expansion, strategic plans, financial
objectives, dividend payments, stock repurchases, financial
outlook, and other such matters, are forward-looking statements.
These forward-looking statements are based on many assumptions and
factors, which are detailed in the Company's filings with
the U.S. Securities and Exchange Commission.
These forward-looking statements are based largely on our
expectations and judgments and are subject to a number of risks and
uncertainties, many of which are unforeseeable and beyond our
control. For additional discussion regarding risks and
uncertainties that may affect forward-looking statements, see
"Risk Factors" disclosed in the Company's Annual
Report on Form 10-K for the year ended January 28, 2023, filed on March 27, 2023. Any changes in such assumptions
or factors could produce significantly different results. The
Company undertakes no obligation to update the forward-looking
statements, whether as a result of new information, future events,
or otherwise.
FOOT LOCKER,
INC.
Condensed
Consolidated Statements of Operations
(unaudited)
Periods ended July
29, 2023 and July 30, 2022
(In millions, except
per share amounts)
|
|
|
|
Second
Quarter
|
|
|
Year-to-Date
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Sales
|
|
$
|
1,861
|
|
|
$
|
2,065
|
|
|
$
|
3,788
|
|
|
$
|
4,240
|
Licensing
revenue
|
|
|
3
|
|
|
|
3
|
|
|
|
7
|
|
|
|
6
|
Total
revenue
|
|
|
1,864
|
|
|
|
2,068
|
|
|
|
3,795
|
|
|
|
4,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
1,357
|
|
|
|
1,411
|
|
|
|
2,706
|
|
|
|
2,846
|
Selling, general and
administrative expenses
|
|
|
442
|
|
|
|
452
|
|
|
|
873
|
|
|
|
915
|
Depreciation and
amortization
|
|
|
50
|
|
|
|
51
|
|
|
|
101
|
|
|
|
105
|
Impairment and
other
|
|
|
14
|
|
|
|
12
|
|
|
|
53
|
|
|
|
18
|
Income from
operations
|
|
|
1
|
|
|
|
142
|
|
|
|
62
|
|
|
|
362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(4)
|
|
|
|
(5)
|
|
|
|
(5)
|
|
|
|
(10)
|
Other income /
(expense), net
|
|
|
—
|
|
|
|
6
|
|
|
|
(3)
|
|
|
|
(19)
|
Income / (loss) before
income taxes
|
|
|
(3)
|
|
|
|
143
|
|
|
|
54
|
|
|
|
333
|
Income tax
expense
|
|
|
2
|
|
|
|
49
|
|
|
|
23
|
|
|
|
107
|
Net income /
(loss)
|
|
|
(5)
|
|
|
|
94
|
|
|
|
31
|
|
|
|
226
|
Net loss attributable
to noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
Net income / (loss)
attributable to Foot Locker, Inc.
|
|
$
|
(5)
|
|
|
$
|
94
|
|
|
$
|
31
|
|
|
$
|
227
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
(0.05)
|
|
|
$
|
0.99
|
|
|
$
|
0.33
|
|
|
$
|
2.36
|
Weighted-average
diluted shares outstanding
|
|
|
94.2
|
|
|
|
95.1
|
|
|
|
95.0
|
|
|
|
96.1
|
Non-GAAP Financial Measures
In addition to reporting the Company's financial results 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. The various non-GAAP adjustments are summarized in the tables
below.
FOOT LOCKER,
INC.
Non-GAAP
Reconciliation
(unaudited)
Periods ended July
29, 2023 and July 30, 2022
(In millions, except
per share amounts)
|
|
|
|
|
|
|
Reconciliation of
GAAP to non-GAAP results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
|
Year-to-Date
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
|
2022
|
Pre-tax
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income / (loss) before
income taxes
|
|
$
|
(3)
|
|
|
$
|
143
|
|
|
$
|
54
|
|
|
$
|
333
|
Pre-tax adjustments
excluded from GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other
(1)
|
|
|
14
|
|
|
|
12
|
|
|
|
53
|
|
|
|
18
|
Other income / expense
(2)
|
|
|
(2)
|
|
|
|
(6)
|
|
|
|
(1)
|
|
|
|
18
|
Adjusted income before
income taxes (non-GAAP)
|
|
$
|
9
|
|
|
$
|
149
|
|
|
$
|
106
|
|
|
$
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss)
attributable to Foot Locker, Inc.
|
|
$
|
(5)
|
|
|
$
|
94
|
|
|
$
|
31
|
|
|
$
|
227
|
After-tax adjustments
excluded from GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and other,
net of income tax benefit of $3, $3, $9, and $5 million,
respectively (1)
|
|
|
11
|
|
|
|
9
|
|
|
|
44
|
|
|
|
13
|
Other income /
expense, net of income tax benefit of $-, $(3), $-, and $3 million,
respectively (2)
|
|
|
(2)
|
|
|
|
(3)
|
|
|
|
(1)
|
|
|
|
15
|
Tax reserves benefit /
charge (3)
|
|
|
—
|
|
|
|
5
|
|
|
|
(4)
|
|
|
|
5
|
Adjusted net income
(non-GAAP)
|
|
$
|
4
|
|
|
$
|
105
|
|
|
$
|
70
|
|
|
$
|
260
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
|
Year-to-Date
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
(0.05)
|
|
|
$
|
0.99
|
|
|
$
|
0.33
|
|
|
$
|
2.36
|
Diluted EPS amounts
excluded from GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment and
other (1)
|
|
|
0.12
|
|
|
|
0.09
|
|
|
|
0.47
|
|
|
|
0.14
|
Other income /
expense (2)
|
|
|
(0.03)
|
|
|
|
(0.03)
|
|
|
|
(0.02)
|
|
|
|
0.16
|
Tax reserves benefit /
charge (3)
|
|
|
—
|
|
|
|
0.05
|
|
|
|
(0.04)
|
|
|
|
0.05
|
Adjusted diluted
earnings per share (non-GAAP)
|
|
$
|
0.04
|
|
|
$
|
1.10
|
|
|
$
|
0.74
|
|
|
$
|
2.71
|
|
Notes on Non-GAAP
Adjustments:
|
|
(1)
|
For the second
quarter of 2023, impairment and other included transformation
consulting expense of $7 million, impairment
charges of $3 million, primarily accelerated tenancy
charges on right-of-use assets for the closures of the Sidestep
banner and certain Foot Locker Asia stores, and $3 million of
reorganization costs, primarily related to the closures of the
Sidestep banner and certain Foot Locker Asia stores. For
year-to-date 2023, impairment and other
included transformation consulting expense
of $26 million, impairment
charges of $21 million, primarily accelerated
tenancy charges on right-of-use assets for the closures of the
Sidestep banner and certain Foot Locker Asia stores,
and $5 million of reorganizations costs, primarily
related to the announced closure of a North American
distribution center and the closures of the Sidestep banner
and certain Foot Locker Asia stores.
For the second quarter
of 2022, impairment and other charges included $9 million of
transformation consulting, $1 million of acquisition integration
costs, and $2 million of impairment of long-lived assets and
right-of-use assets and accelerated tenancy charges. For
year-to-date 2022, impairment and other charges included $10
million of transformation consulting, $3 million of acquisition
integration costs, and $5 million of impairment of long-lived
assets and right-of-use assets and accelerated tenancy
charges.
|
|
|
(2)
|
For
the second quarter of 2023,
other income / expense consisted of a $2 million gain from the
sale of our Singapore and Malaysian Foot
Locker businesses to our license partner, which was partially
offset by our share of losses related to equity method investments
of $1 million for year-to-date 2023.
Other income / expense
for the second quarter of 2022 primarily consisted of an $18
million gain on the divestiture of the Team Sales business,
partially offset by a $12 million loss on minority investments,
primarily due to a change in fair value of the investment in
Retailors, Ltd., a publicly listed entity. The year-to-date
2022 amount also included $24 million of additional losses on
minority investments, primarily from the investment in Retailors,
Ltd.
|
|
|
(3)
|
In the
first quarter of 2023, the Company recorded a $4 million
benefit related to income tax reserves due to a statute of
limitations release. In the second quarter of 2022, we recorded a
$5 million charge related to our income tax reserves due to the
resolution of a foreign tax settlement. In the second quarter of
2022, the Company recorded a $5 million charge related to the
Company's income tax reserves due to the resolution of a foreign
tax settlement.
|
FOOT LOCKER,
INC.
Sales by
Banner
(unaudited)
Periods ended July
29, 2023 and July 30, 2022
(In
millions)
|
|
|
|
|
Second
Quarter
|
|
|
Year-to-Date
|
|
|
|
2023
|
|
|
2022
|
|
|
Constant
Currencies
|
|
|
Comparable
Sales
|
|
|
2023
|
|
|
2022
|
|
|
Constant
Currencies
|
|
|
Comparable
Sales
|
|
Foot Locker
|
|
$
|
704
|
|
|
$
|
752
|
|
|
|
(5.9)
|
%
|
|
|
(4.6)
|
%
|
|
|
1,448
|
|
|
|
1,559
|
|
|
|
(6.5)
|
%
|
|
|
(5.0)
|
%
|
Champs
Sports
|
|
|
293
|
|
|
|
406
|
|
|
|
(27.6)
|
|
|
|
(25.3)
|
|
|
|
621
|
|
|
|
860
|
|
|
|
(27.4)
|
|
|
|
(24.9)
|
|
Kids Foot
Locker
|
|
|
146
|
|
|
|
155
|
|
|
|
(5.8)
|
|
|
|
(4.7)
|
|
|
|
313
|
|
|
|
335
|
|
|
|
(6.6)
|
|
|
|
(6.3)
|
|
WSS
|
|
|
145
|
|
|
|
138
|
|
|
|
5.1
|
|
|
|
(7.9)
|
|
|
|
295
|
|
|
|
276
|
|
|
|
6.9
|
|
|
|
(6.2)
|
|
Other
|
|
|
—
|
|
|
|
37
|
|
|
|
(100.0)
|
|
|
|
n.m.
|
|
|
|
—
|
|
|
|
90
|
|
|
|
(100.0)
|
|
|
|
n.m.
|
|
North
America
|
|
|
1,288
|
|
|
|
1,488
|
|
|
|
(13.1)
|
|
|
|
(12.4)
|
|
|
|
2,677
|
|
|
|
3,120
|
|
|
|
(13.8)
|
|
|
|
(12.6)
|
|
Foot Locker
|
|
|
416
|
|
|
|
404
|
|
|
|
0.2
|
|
|
|
(1.1)
|
|
|
|
795
|
|
|
|
781
|
|
|
|
1.9
|
|
|
|
0.5
|
|
Sidestep
|
|
|
12
|
|
|
|
25
|
|
|
|
(56.0)
|
|
|
|
(34.7)
|
|
|
|
26
|
|
|
|
49
|
|
|
|
(49.0)
|
|
|
|
(36.6)
|
|
EMEA
|
|
|
428
|
|
|
|
429
|
|
|
|
(3.0)
|
|
|
|
(2.3)
|
|
|
|
821
|
|
|
|
830
|
|
|
|
(1.1)
|
|
|
|
(1.2)
|
|
Foot Locker
|
|
|
102
|
|
|
|
100
|
|
|
|
4.0
|
|
|
|
5.7
|
|
|
|
200
|
|
|
|
193
|
|
|
|
8.3
|
|
|
|
(20.4)
|
|
atmos
|
|
|
43
|
|
|
|
48
|
|
|
|
(12.5)
|
|
|
|
(10.0)
|
|
|
|
90
|
|
|
|
97
|
|
|
|
(3.1)
|
|
|
|
12.7
|
|
Asia Pacific
|
|
|
145
|
|
|
|
148
|
|
|
|
(1.4)
|
|
|
|
0.4
|
|
|
|
290
|
|
|
|
290
|
|
|
|
4.5
|
|
|
|
8.9
|
|
Total
|
|
$
|
1,861
|
|
|
$
|
2,065
|
|
|
|
(10.2)
|
%
|
|
|
(9.4)
|
%
|
|
|
3,788
|
|
|
|
4,240
|
|
|
|
(10.0)
|
%
|
|
|
(9.2)
|
%
|
FOOT LOCKER,
INC.
Condensed
Consolidated Balance Sheets
(unaudited)
(In
millions)
|
|
|
|
July
29,
|
|
|
July
30,
|
|
|
2023
|
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
180
|
|
|
$
|
386
|
Merchandise
inventories
|
|
|
1,831
|
|
|
|
1,644
|
Other current
assets
|
|
|
360
|
|
|
|
285
|
|
|
|
2,371
|
|
|
|
2,315
|
Property and equipment,
net
|
|
|
898
|
|
|
|
899
|
Operating lease
right-of-use assets
|
|
|
2,266
|
|
|
|
2,526
|
Deferred
taxes
|
|
|
94
|
|
|
|
74
|
Goodwill
|
|
|
774
|
|
|
|
773
|
Other intangible
assets, net
|
|
|
415
|
|
|
|
432
|
Minority
investments
|
|
|
629
|
|
|
|
736
|
Other assets
|
|
|
89
|
|
|
|
113
|
|
|
$
|
7,536
|
|
|
$
|
7,868
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
514
|
|
|
$
|
596
|
Accrued and other
liabilities
|
|
|
419
|
|
|
|
435
|
Current portion of
long-term debt and obligations under finance leases
|
|
|
6
|
|
|
|
6
|
Current portion of
lease obligations
|
|
|
513
|
|
|
|
548
|
|
|
|
1,452
|
|
|
|
1,585
|
Long-term debt and
obligations under finance leases
|
|
|
444
|
|
|
|
449
|
Long-term lease
obligations
|
|
|
2,071
|
|
|
|
2,287
|
Other
liabilities
|
|
|
322
|
|
|
|
330
|
Total
liabilities
|
|
|
4,289
|
|
|
|
4,651
|
Total shareholders'
equity
|
|
|
3,247
|
|
|
|
3,217
|
|
|
$
|
7,536
|
|
|
$
|
7,868
|
FOOT LOCKER,
INC.
Condensed
Consolidated Statement of Cash Flows
(unaudited)
(In
millions)
|
|
|
|
Twenty-six weeks
ended
|
|
|
July
29,
|
|
|
July
30,
|
($ in
millions)
|
|
2023
|
|
|
2022
|
From operating
activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
31
|
|
|
$
|
226
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
Non-cash impairment
and other
|
|
|
21
|
|
|
|
5
|
Fair value adjustments
to minority investments
|
|
|
—
|
|
|
|
38
|
Depreciation and
amortization
|
|
|
101
|
|
|
|
105
|
Deferred income
taxes
|
|
|
(3)
|
|
|
|
8
|
Share-based
compensation expense
|
|
|
4
|
|
|
|
16
|
Gain on sales of
businesses
|
|
|
(2)
|
|
|
|
(18)
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
Merchandise
inventories
|
|
|
(194)
|
|
|
|
(413)
|
Accounts
payable
|
|
|
23
|
|
|
|
10
|
Accrued and other
liabilities
|
|
|
(97)
|
|
|
|
(69)
|
Other, net
|
|
|
(68)
|
|
|
|
(10)
|
Net cash used in
operating activities
|
|
|
(184)
|
|
|
|
(102)
|
From investing
activities:
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(105)
|
|
|
|
(156)
|
Purchase of business,
net of cash acquired
|
|
|
—
|
|
|
|
(12)
|
Minority
investments
|
|
|
(1)
|
|
|
|
(4)
|
Proceeds from sales of
businesses
|
|
|
10
|
|
|
|
47
|
Proceeds from minority
investments
|
|
|
—
|
|
|
|
12
|
Net cash used in
investing activities
|
|
|
(96)
|
|
|
|
(113)
|
From financing
activities:
|
|
|
|
|
|
|
|
Dividends paid on
common stock
|
|
|
(75)
|
|
|
|
(76)
|
Purchase of treasury
shares
|
|
|
—
|
|
|
|
(129)
|
Payment of obligations
under finance leases
|
|
|
(3)
|
|
|
|
(3)
|
Shares of common stock
repurchased to satisfy tax withholding obligations
|
|
|
(10)
|
|
|
|
(1)
|
Treasury stock
reissued under employee stock plan
|
|
|
3
|
|
|
|
3
|
Proceeds from exercise
of stock options
|
|
|
5
|
|
|
|
3
|
Contribution from
non-controlling interest
|
|
|
—
|
|
|
|
4
|
Net cash used in
financing activities
|
|
|
(80)
|
|
|
|
(199)
|
Effect of exchange rate
fluctuations on cash, cash equivalents, and restricted
cash
|
|
|
3
|
|
|
|
(5)
|
Net change in cash,
cash equivalents, and restricted cash
|
|
|
(357)
|
|
|
|
(419)
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
|
|
582
|
|
|
|
850
|
Cash, cash
equivalents, and restricted cash at end of period
|
|
$
|
225
|
|
|
$
|
431
|
FOOT LOCKER,
INC.
Store Count and
Square Footage
(unaudited)
|
|
Store activity is as
follows:
|
|
|
|
January
28,
|
|
|
|
|
|
|
|
|
|
|
July
29,
|
|
|
Relocations/
|
|
|
2023
|
|
|
Opened
|
|
|
Closed
|
|
|
2023
|
|
|
Remodels
|
Foot Locker
U.S.
|
|
|
747
|
|
|
|
-
|
|
|
|
8
|
|
|
|
739
|
|
|
|
10
|
Foot Locker
Canada
|
|
|
86
|
|
|
|
-
|
|
|
|
2
|
|
|
|
84
|
|
|
|
4
|
Champs
Sports
|
|
|
486
|
|
|
|
-
|
|
|
|
9
|
|
|
|
477
|
|
|
|
-
|
Kids Foot
Locker
|
|
|
394
|
|
|
|
-
|
|
|
|
4
|
|
|
|
390
|
|
|
|
5
|
WSS
|
|
|
115
|
|
|
|
12
|
|
|
|
1
|
|
|
|
126
|
|
|
|
-
|
Footaction
|
|
|
2
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
North
America
|
|
|
1,830
|
|
|
|
12
|
|
|
|
25
|
|
|
|
1,817
|
|
|
|
19
|
Foot Locker Europe
(1)
|
|
|
644
|
|
|
|
14
|
|
|
|
18
|
|
|
|
640
|
|
|
|
11
|
Sidestep
|
|
|
78
|
|
|
|
-
|
|
|
|
77
|
|
|
|
1
|
|
|
|
-
|
EMEA
|
|
|
722
|
|
|
|
14
|
|
|
|
95
|
|
|
|
641
|
|
|
|
11
|
Foot Locker
Pacific
|
|
|
94
|
|
|
|
1
|
|
|
|
1
|
|
|
|
94
|
|
|
|
4
|
Foot Locker
Asia
|
|
|
33
|
|
|
|
-
|
|
|
|
20
|
|
|
|
13
|
|
|
|
-
|
atmos
|
|
|
35
|
|
|
|
1
|
|
|
|
2
|
|
|
|
141
|
|
|
|
-
|
Asia Pacific
|
|
|
162
|
|
|
|
2
|
|
|
|
23
|
|
|
|
141
|
|
|
|
4
|
Total
|
|
|
2,714
|
|
|
|
28
|
|
|
|
143
|
|
|
|
2,599
|
|
|
|
34
|
Selling and gross
square footage are as follows:
|
|
|
|
July 30,
2022
|
|
|
July 29,
2023
|
(in
thousands)
|
|
Selling
|
|
|
Gross
|
|
|
Selling
|
|
|
Gross
|
Foot Locker
U.S.
|
|
|
2,382
|
|
|
|
4,110
|
|
|
|
2,354
|
|
|
|
4,028
|
Foot Locker
Canada
|
|
|
250
|
|
|
|
411
|
|
|
|
250
|
|
|
|
412
|
Champs
Sports
|
|
|
1,890
|
|
|
|
2,958
|
|
|
|
1,760
|
|
|
|
2,761
|
Kids Foot
Locker
|
|
|
744
|
|
|
|
1,256
|
|
|
|
750
|
|
|
|
1,259
|
WSS
|
|
|
1,035
|
|
|
|
1,301
|
|
|
|
1,301
|
|
|
|
1,562
|
Footaction
|
|
|
38
|
|
|
|
67
|
|
|
|
3
|
|
|
|
6
|
North
America
|
|
|
6,339
|
|
|
|
10,103
|
|
|
|
6,418
|
|
|
|
10,028
|
Foot Locker Europe
(1)
|
|
|
1,121
|
|
|
|
2,322
|
|
|
|
1,172
|
|
|
|
2,399
|
Sidestep
|
|
|
101
|
|
|
|
191
|
|
|
|
10
|
|
|
|
20
|
EMEA
|
|
|
1,222
|
|
|
|
2,513
|
|
|
|
1,182
|
|
|
|
2,419
|
Foot Locker
Pacific
|
|
|
196
|
|
|
|
303
|
|
|
|
219
|
|
|
|
334
|
Foot Locker
Asia
|
|
|
126
|
|
|
|
233
|
|
|
|
52
|
|
|
|
98
|
atmos
|
|
|
38
|
|
|
|
64
|
|
|
|
35
|
|
|
|
61
|
Asia Pacific
|
|
|
360
|
|
|
|
600
|
|
|
|
306
|
|
|
|
493
|
Total
|
|
|
7,921
|
|
|
|
13,216
|
|
|
|
7,906
|
|
|
|
12,940
|
|
(1) Includes 16
and 14 Kids Foot Locker stores operating in Europe for January 28,
2023 and July 29, 2023, respectively, and the related square
footage.
|
Contacts:
Kate Fitzsimons
Investor Relations
ir@footlocker.com
(212) 720-4600
Olivia Mata
Corporate Communications
mediarelations@footlocker.com
(815) 763-3159
View original
content:https://www.prnewswire.com/news-releases/foot-locker-inc-reports-2023-second-quarter-results-301907371.html
SOURCE Foot Locker IR