Specialty athletic retailer Foot Locker Inc ( FL ) reported first-quarter results on Thursday.

Last week, Foot Locker ( FL ) disclosed a definitive deal to be acquired by Dick's Sporting Goods Inc , which values Foot Locker's ( FL ) equity at around $2.4 billion and its enterprise at about $2.5 billion.

The company reported a quarterly sales decline of 4.6% year-on-year to $1.79 billion, missing the analyst consensus estimate of $1.89 billion.

Also Read: What's Next For Foot Locker? Analyst Says Dick's Deal Is Timely

Comparable store sales decreased 2.6% compared to last year. Adjusted EPS of 7 cents loss missed the analyst consensus estimate of 14 cents.

The gross margin declined by 40 basis points, merchandise margins decreased by 10 basis points, and occupancy as a percentage of sales increased by 30 basis points compared to the prior-year period.

Selling, general, and administrative expenses remained flattish Y/Y at $458 million.

Loss from operations for the quarter was $271 million. Merchandise inventories were $1.67 billion, flattish Y/Y.

The company held $343 million in cash and equivalents as of May 3, 2025. It used $3 million in operating cash flow during the quarter.

During the first quarter, the company opened nine new stores and closed 56 stores in South Korea, Denmark, Norway, Sweden, Greece, and Romania. It also remodeled or relocated 11 stores and refreshed 69.

As of May 3, 2025, the company operated 2,363 stores in 20 North American, European, Asian, Australian, and New Zealand countries. In addition, 236 licensed stores were operating in the Middle East, Europe, and Asia.

Mary Dillon, CEO, said the company continued to execute its Lace Up Plan strategies as it looked forward to the successful completion of its transaction with DICK'S Sporting Goods. He acknowledged that when it reported preliminary first-quarter results, it experienced softer traffic trends globally that impacted its performance. 

Price Action: At the last check on Thursday, FL shares were trading higher by 0.08% to $23.92 in the premarket session.

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