Foot Locker (FL) Q2 2026 earnings summary

Executive summary

• Total revenue for the quarter was $1,857 million, down 2.4% year-over-year; year-to-date revenue was $3,651 million, down 3.5% from the prior year.

• Net loss for the quarter was $38 million, compared to $12 million in the prior year; year-to-date net loss was $401 million, compared to $4 million last year.

• North American comparable sales rose 1.4%, led by Foot Locker, Kids Foot Locker, and Champs Sports banners, while international regions lagged.

• The company is being acquired by DICK'S Sporting Goods, with all shareholder and regulatory approvals received and closing expected September 8, 2025.

• Store modernization continued with 52 refreshes and 11 reimagined store openings.

Financial highlights

• Comparable sales decreased 2.0% for the quarter and 2.3% year-to-date, driven by lower store traffic and declines in key product categories.

• Gross margin rate declined to 27.1% for the quarter (down 50 bps), reflecting increased promotional activity and lower vendor allowances.

• SG&A expenses decreased in absolute terms but increased as a percentage of sales due to deleverage on lower revenue.

• Adjusted net loss (non-GAAP) for the quarter was $27 million, with adjusted diluted loss per share of $0.27.

• Cash and cash equivalents at quarter-end were $299 million; total debt was $444 million.

Outlook and guidance

• Full-year capital spending is forecast at $250 million, a $50 million reduction from prior plans, with a focus on store refreshes and technology initiatives.

• Management continues to monitor macroeconomic headwinds and is implementing strategic initiatives to improve profitability, especially in underperforming banners and regions.