56 branch closures and high loss in the first quarter of 2025
US sports and sneaker retailer Foot Locker remains elusive in 2025: For the first quarter, which ended on May 3, the company reported a significant decline in sales and a substantial net loss. At the same time, the group implemented comprehensive structural measures, including the closure of 56 stores worldwide – primarily in South Korea, Scandinavia, and Southeastern Europe. In Greece and Romania, business operations were also transferred to a local licensing partner.
Overall, sales decreased by 4,6 percent year-on-year to $1,79 billion. Comparable sales fell by 2,6 percent, with significant regional variations: While North America remained relatively stable with a decline of just 0,5 percent, international sales fell by a significant 8,5 percent – Foot Locker Europe was particularly weak. This resulted in a net loss of $363 million, compared to a profit of $XNUMX million in the prior-year period.
Despite the declining business performance, Foot Locker continues to focus on selective expansion and the modernization of its retail spaces. As part of its "Reimagined and Refresh" program, the company opened nine new stores in the first quarter, relocated or modernized eleven additional locations, and redesigned 69 stores. "We continue to invest in modernizing our stores to sustainably improve the customer experience," explained CEO Mary Dillon. At the same time, she emphasized that the global consumer climate and declining customer traffic had impacted the quarterly figures. The company is responding with disciplined cost and inventory management, as well as targeted promotion control.
The announced acquisition by Dick's Sporting Goods is also currently in focus. The purchase price is $2,4 billion, corresponding to $24 per share. The transaction is expected to close in the second half of 2025.
As of the reporting date, Foot Locker operated 2.363 of its own stores in 20 countries worldwide, as well as 236 licensed stores, primarily in Asia, Europe and the Middle East.
