Foot Locker Inc (FL)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.07% | 1.53% | 27.83% | 32.01% | 7.13% |
| Operating profit margin | 1.29% | 1.74% | 1.74% | 6.63% | 6.63% |
| Pretax margin | 0.64% | -5.18% | -5.18% | 5.98% | 5.96% |
| Net profit margin | 0.15% | -4.04% | -4.04% | 3.90% | 3.90% |
Based on the data provided, we can observe various trends in Foot Locker Inc's profitability ratios over the last few years.
1. Gross Profit Margin:
- In January 2023, the gross profit margin was relatively low at 7.13%, but it significantly improved to 32.01% by January 2023. However, there was a decline in this margin to 27.83% by January 2024. Subsequently, in February 2024, there was a notable decrease to 1.53%. The margin recovered slightly to 29.07% by January 2025.
2. Operating Profit Margin:
- The operating profit margin remained stable at 6.63% from January 28, 2023, to January 31, 2023. However, it dropped to 1.74% by January 31, 2024, and remained at the same level on February 3, 2024. By January 31, 2025, the margin further decreased to 1.29%.
3. Pretax Margin:
- The pretax margin was consistent around 5-6% in January 28, 2023, and January 31, 2023. However, there was a significant decline to -5.18% in January 31, 2024, and it remained the same by February 3, 2024. The margin improved slightly to 0.64% in January 31, 2025.
4. Net Profit Margin:
- The net profit margin mirrored the trend in the pretax margin, remaining stable at 3.90% from January 28, 2023, to January 31, 2023. However, it turned negative at -4.04% in January 31, 2024, which persisted until February 3, 2024. By January 31, 2025, it improved slightly to 0.15%.
In summary, Foot Locker Inc experienced fluctuations in its profitability margins over the years, with some periods of decline in gross profit, operating profit, pretax profit, and net profit margins. These shifts suggest challenges in maintaining consistent profitability and efficiency in the company's operations. Further analysis of the reasons behind these variations would provide valuable insights into Foot Locker's financial performance.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.53% | 2.07% | 2.07% | 7.35% | 7.35% |
| Return on assets (ROA) | 0.18% | -4.80% | -4.80% | 4.33% | 4.33% |
| Return on total capital | 1.27% | 4.32% | -13.81% | 19.77% | 15.75% |
| Return on equity (ROE) | 0.41% | -11.42% | -11.42% | 10.39% | 10.39% |
Based on the provided data, the profitability ratios of Foot Locker Inc show varying trends over the years.
1. Operating Return on Assets (Operating ROA): The operating ROA remained relatively stable at 7.35% from January 28, 2023, to February 3, 2024, but saw a significant decline to 1.53% by January 31, 2025. This indicates that the company's operating income generated from its assets decreased over time.
2. Return on Assets (ROA): The ROA was positive at 4.33% on January 28, 2023, and January 31, 2023, but turned negative to -4.80% on January 31, 2024, and February 3, 2024. By January 31, 2025, the ROA improved slightly to 0.18%. The negative ROA in 2024 suggests that Foot Locker struggled to generate profits from its assets during that period.
3. Return on Total Capital: The return on total capital fluctuated significantly over the years. It was highest at 19.77% on January 31, 2023, but dropped to -13.81% on January 31, 2024. The ratio improved to 1.27% by January 31, 2025. This indicates that the company's ability to generate returns from both debt and equity investments was volatile.
4. Return on Equity (ROE): The ROE mirrored the trends in ROA and total capital return. It was positive at 10.39% on January 28, 2023, and January 31, 2023, but turned negative to -11.42% on January 31, 2024, and February 3, 2024. By January 31, 2025, the ROE improved slightly to 0.41%. The negative ROE in 2024 suggests that Foot Locker struggled to generate returns for its shareholders.
In conclusion, Foot Locker Inc experienced fluctuations in its profitability ratios over the years, with some indicating a decline in performance, particularly in 2024. Investors and analysts may want to further investigate the company's financial health and operational efficiency to understand the factors influencing these trends.