Foot Locker reported a challenging first quarter for 2025, with total sales declining 4.6% year-over-year to $1.79 billion and comparable sales falling 2.6%. The company swung to a net loss of $363 million compared to a $8 million profit in the previous year, driven by impairment charges and weaker global traffic. Adjusted earnings per share stood at negative $0.07, and gross margin decreased by 40 basis points while selling, general, and administrative expenses rose by 100 basis points. Foot Locker closed 56 stores and opened 9 during the quarter. The company did not hold an earnings call following the release. This downturn presents a potential challenge for Dick’s Sporting Goods, which is preparing to acquire Foot Locker. Dick’s Sporting Goods continues to show strong same-store sales growth and has maintained its outlook amid rising quarterly sales. Dick’s executive chairman Ed Stack described the acquisition as a "unique opportunity" to strengthen global brand relationships, noting that the two brands will operate separately with sneakers expected to account for up to half of total sales. Meanwhile, Shoe Carnival reported a 7.5% decline in net sales to $277.7 million in the first quarter of 2025, with comparable store sales down 8.1%. Despite the revenue drop, Shoe Carnival beat profit expectations by 10%, supported by its Shoe Station rebanner strategy, which aims to cover 80% of its store fleet by 2027. The company plans to focus on premium brands moving forward.