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Foot Locker (Foot Locker) Operating Margin % : -0.96% (As of Jan. 2024)


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What is Foot Locker Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Foot Locker's Operating Income for the three months ended in Jan. 2024 was $-23 Mil. Foot Locker's Revenue for the three months ended in Jan. 2024 was $2,384 Mil. Therefore, Foot Locker's Operating Margin % for the quarter that ended in Jan. 2024 was -0.96%.

Warning Sign:

Foot Locker Inc operating margin has been in a 5-year decline. The average rate of decline per year is -20.4%.

The historical rank and industry rank for Foot Locker's Operating Margin % or its related term are showing as below:

FL' s Operating Margin % Range Over the Past 10 Years
Min: 1.7   Med: 8.98   Max: 12.95
Current: 1.7


FL's Operating Margin % is ranked worse than
61.59% of 1109 companies
in the Retail - Cyclical industry
Industry Median: 3.5 vs FL: 1.70

Foot Locker's 5-Year Average Operating Margin % Growth Rate was -20.40% per year.

Foot Locker's Operating Income for the three months ended in Jan. 2024 was $-23 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $139 Mil.


Foot Locker Operating Margin % Historical Data

The historical data trend for Foot Locker's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Foot Locker Operating Margin % Chart

Foot Locker Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.92 5.71 11.70 7.91 1.70

Foot Locker Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.69 5.08 0.70 2.56 -0.96

Competitive Comparison of Foot Locker's Operating Margin %

For the Apparel Retail subindustry, Foot Locker's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Foot Locker's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Foot Locker's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Foot Locker's Operating Margin % falls into.



Foot Locker Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Foot Locker's Operating Margin % for the fiscal year that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=139 / 8168
=1.70 %

Foot Locker's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=-23 / 2384
=-0.96 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Foot Locker  (NYSE:FL) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Foot Locker Operating Margin % Related Terms

Thank you for viewing the detailed overview of Foot Locker's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Foot Locker (Foot Locker) Business Description

Traded in Other Exchanges
Address
330 West 34th Street, New York, NY, USA, 10001
Foot Locker Inc operates thousands of retail stores throughout the United States, Canada, Europe, Australia, and New Zealand. It also has one franchisee in the Middle East and one in South Korea, each of which operates multiple stores in those regions. The company mainly sells athletically inspired shoes and apparel. Foot Locker's merchandise comes from only a few suppliers, with Nike providing the majority. Store names include Foot Locker, Champs, and Runners Point. The company also has an e-commerce business selling through Footlocker.com, Eastbay, and Final-Score.
Executives
Mary N Dillon director, officer: President & CEO ULTA BEAUTY, INC., 1000 REMINGTON BLVD SUITE 120, BOLINGBROOK IL 60440
Jennifer Kraft officer: EVP and General Counsel C/O FOOT LOCKER, INC., NEW YORK NY 10001
Michael Baughn officer: EVP & Chief Financial Officer C/O FOOT LOCKER, INC., 140 FOUNTAIN PARKWAY, ST. PETERSBURG FL 33716
Robert Higginbotham officer: Interim CFO C/O FOOT LOCKER, INC., 330 WEST 34TH STREET, NEW YORK NY 10001
John A Maurer officer: VP, Treasurer FOOT LOCKER, INC., 112 WEST 34TH STREET, NEW YORK NY 10120
Giovanna Cipriano officer: SVP & Chief Accounting Officer FOOT LOCKER, INC., 112 WEST 34TH STREET, NEW YORK NY 10120
Todd Greener officer: SVP, Global Supply Chain 330 WEST 34TH STREET, NEW YORK NY 10001
Richard A Johnson director, officer: President & CEO FOOT LOCKER, INC., 112 WEST 34TH STREET, NEW YORK NY 10120
Rosalind Reeves officer: EVP, Chief HR Officer C/O FOOT LOCKER, INC., 330 WEST 34TH STREET, NEW YORK NY 10001
Elliott Rodgers officer: EVP, Chief Operations Officer C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Vesa Equity Investment S.a R.l. 10 percent owner 2, PLACE DE PARIS, LUXEMBOURG N4 L-2314
Nitin Neil Bansal officer: EVP,Chief Strat&Transform Off C/O FOOT LOCKER, INC., 330 WEST 34TH STREET, NEW YORK NY 10001
Andrew E Page officer: EVP & Chief Financial Officer C/O FOOT LOCKER, INC., 330 WEST 34TH STREET, NEW YORK NY 10001
Samantha Lomow officer: President, Global Brands 2400 WEST CENTRAL ROAD, HOFFMAN ESTATES IL 60192
Virginia Drosos director CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11