By Denny Jacob

Foot Locker is scheduled to report its fourth-quarter results Wednesday before the market opens. Here is what you need to know:

SALES: The sneaker and athletic-wear retailer is expected to post $2.32 billion in sales for the quarter, down from $2.38 billion in the year-ago period, according to FactSet. Foot Locker previously forecast sales in the fourth quarter to decline between 1.5% and 3.5%.

NET INCOME: Foot Locker is expected to report $67.4 million in net income compared to a loss of $389 million in the prior-year period, according to FactSet.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at 72 cents a share.

The stock declined around 9.6% during the quarter and recently traded around $17.41.

WHAT TO WATCH

--Foot Locker's guidance for the full year will be closely watched as consumer confidence wanes and tariffs mount. The vast majority of shoes sold in the United States are imported from China. The U.S. on Tuesday introduced an extra 10% tariff on Chinese imports overnight, adding to a levy imposed a month ago, and other existing duties.

--Look for commentary from the company on which brands resonated with shoppers, particularly as Nike rebalances its product mix and inventory levels. Foot Locker in previous quarters saw strong sales for On Holding and Deckers Outdoor's Hoka brand, among others.

--Investors are watching the pace of sales during the holidays, a critical selling window for retailers. Foot Locker's promotions, cost-control and loyalty program, and how they affect profitability, will be in focus.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

March 04, 2025 15:01 ET (20:01 GMT)

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