Q4 2024 Foot Locker Inc Earnings Call Transcript
Key Points
- Foot Locker Inc (FL) achieved three consecutive quarters of positive comp sales and year-over-year gross margin expansion.
- The company's 'Lace Up' strategy is driving results, with significant progress made in 2024 and plans to continue this momentum into 2025.
- Foot Locker Inc (FL) saw a 2.6% increase in total comp sales in the fourth quarter, led by strong performance in the Foot Locker and Kids Foot Locker banners.
- The company improved its gross margin by 300 basis points year-over-year, driven by merchandise margin recovery and cost savings.
- Foot Locker Inc (FL) relaunched its FLX Rewards Program, achieving a 49% sales capture rate in North America, nearing its 50% target two years ahead of schedule.
- Foot Locker Inc (FL) experienced a 5.8% decline in total sales, primarily due to the lapping of the 53rd week in 2023 and foreign currency headwinds.
- The company noted consumer uncertainty and cautious spending behavior, impacting business performance in early 2025.
- Foot Locker Inc (FL) faced challenges in its apparel business, with comp declines in the mid-teens due to lagging innovation.
- The WSS banner saw a 3.3% decline in comparable sales, attributed to cautious consumer spending and external factors like inflation and fires in Los Angeles.
- Foot Locker Inc (FL) anticipates a softer start to 2025, with consumer sensitivity to external factors such as tax refund timing affecting sales.
(audio in progress)
Please note that this conference is being recorded.
I will now turn the call over to Mr. Robert Higginbotham, Senior Vice President, Corporate Finance, Investor Relations and Treasurer. Sir, you may begin.
Thank you, operator. Welcome, everyone, to Foot Locker Inc.'s fourth-quarter earnings call. We will begin with prepared remarks by Mary Dillon, our President and Chief Executive Officer. Frank Bracken, our Executive Vice President and Chief Commercial Officer, will then give more detail on our results across our banners and geographies. Then, Mike Baughn, our Executive Vice President and Chief Financial Officer, will review our fourth quarter results and our 2025 outlook. Following our prepared remarks, Mary, Frank and Mike will take your questions.
To note, today's call will reference certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP results is included in this morning's
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