Foot Locker plans to transform its brick-and-mortar fleet by revamping 300 stores, shuttering 400 stores, and opening 80 reimagined locations by the end of 2025.
In an earnings call on 5 March 2025, CEO Mary Dillon shared the company’s plans to expand its reimagined store concept, which received a positive customer response after the first store opened in April 2024.
Additionally, the footwear retailer will revamp 300 stores in 2025, following a successful upgrade of 400 stores in 2024.
Dillon said: “As we reflect on 2024, I’m proud of the progress we’ve made with our Lace Up Plan in what’s proven to be a dynamic consumer and category backdrop.
“During the year, we achieved some important financial milestones, including a return to positive enterprise comp sales growth, gross margin expansion, and positive free cash flow, all of which we expect to continue into 2025.”
As a part of its plan, the company will close 400 stores and exit certain international markets to optimize its real estate portfolio.
The accelerated turnaround plans follow declining sales reported in Q4 2024, with total sales dropping by 5.8% to $2.2 billion, while comparable sales rose by 2.6%.
In fiscal 2024, the company’s total revenue fell to $7.9 billion compared to $8.1 billion in the year prior.
Dillon added: “That said, as we move through February, we saw consumers being more cautious and sensitive, which has impacted our business quarter-to-date.
“They spend when there’s a call to action, but they are more cautious in those in-between periods.”
The company stated that the additional tariffs will not have a major effect on business operations, as imports from China are a small fraction of its business model.
Mike Baughn, chief financial officer, added: “Our customers are young; by definition, they’re more limited in their discretionary budgets.
“This is for sure a category that they prioritize in their lives, but we’re watching as they’re thinking about the overall cost of living, plus some uncertainty about tariffs.”
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