Latest news with #MaryDillon
Yahoo
2 days ago
- Business
- Yahoo
Foot Locker Opened 9 New Stores and Closed 56 Doors In Q1
With Foot Locker Inc. announcing preliminary first-quarter results on May 15, the official tally on earnings Thursday was no surprise. The sneaker retailer said at the time that it inked a deal to be acquired by Dick's Sporting Goods for $2.4 billion, or $24 a share. The deal is expected to close later this year, and some on Wall Street concluded the combined entity will be good for its vendor base. Dick's reported first quarter results on Wednesday, and its CEO Lauren Hobart said Nike is among the vendors that that 'continues to perform really, really well for us.' More from WWD Ulta Beauty Nudges Up Full-year Guidance After Stronger Than Expected Q1 Performance Tariff Impact Evident in Caleres' Q1 as Sales, Profits Slide Dick's Sporting Goods Delivers Record Q1 Sales, Maintains Full-year Guidance 'We are continuing to execute our Lace Up Plan strategies as we look forward to the successful completion of our transaction with DICK'S Sporting Goods,' Foot Locker's CEO Mary Dillon said in a statement. She noted that softer traffic trends globally impacted the quarterly results. 'As we have executed these and other initiatives to further advance our strategy, our teams have also remained nimble to navigate the uncertain macroeconomic environment, including managing our promotional levels, inventories, and expenses and remaining disciplined with our cash flows,' she said. What's new in the earnings report is that the company opened 9 new stores and closed 56 locations, including stores in South Korea, Denmark, Norway, Sweden, Greece and Romania. It also remodeled or relocated 11 doors and refreshed 69 locates to it updated store design. At the end of the quarter, Foot Locker operated 2,363 stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. It also has 236 licensed stores operating in the Middle East, Europe and Asia. The retailer said that the licensed operations include the Greece and Romania business that was sold to its license partner in April 2025. For the first quarter ended May 3, the net loss was $363 million, or $3.81 cents a diluted share, versus net income of $8 million, or 9 cents, in the year-ago period. On an adjusted basis, the loss was 7 cents a share. Total revenue fell 4.5 percent to $1.79 billion from $1.88 billion. Total revenue included a 4.6 percent decline in sales to $1.79 billion from $1.87 billion. The company said that comparable sales fell by 2.6 percent. By business segment, comparable sales in the North American region slipped by 0.5 percent, and was down 8.5 percent at its international businesses, led by softness in Foot Locker Europe. Also impacting results was a decline in gross margin by 40 basis points versus year-ago levels, with merchandise margins down by 10 basis points. Because of the pending acquisition, the retailer's management did not hold a conference call to discuss earnings results. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Sign in to access your portfolio
Fashion United
2 days ago
- Business
- Fashion United
Foot Locker closes 56 stores as it swings to loss in Q1
Foot Locker enacted a series of global store closures in the first quarter ended May 3, 2025, as it swung into a loss amid declining sales. The company, which earlier this month announced it was to be acquired by US sports retailer Dick's Sporting Goods, said that it closed 56 stores over the reported period. These included locations in South Korea, Denmark, Norway, Sweden, Greece and Romania. Notably, for the latter two regions, Foot Locker sold its licensed operations to its licensing partner in April 2025. The closures fell alongside the opening of nine new stores, as well as the remodel and relocation of 11 stores, with a further 69 locations receiving the brand's updated design standards. This reflected the continued roll out of Foot Locker's 'Reimagined and Refresh' programmes, designed to 'elevate our in-store experience', CEO Mary Dillon said in a release. Ahead of Dick's acquisition, Foot Locker tackles falling sales With this, Foot Locker reaffirmed its Q1 results, already outlined on a preliminary basis earlier this month, which Dillon had said fell 'below our expectations as we experienced softer traffic trends globally'. Total sales were down 4.6 percent to 1.79 billion dollars, while comparable sales decreased 2.6 percent. This drop was particularly impacted by an 8.5 percent decrease in comparable sales for Foot Locker's international business, compared to a more marginal 0.5 percent drop in North American sales. Most notably, Foot Locker swung to a loss during Q1. The company fell from a net income of eight million dollars in the same period of the year prior to a net loss of 363 million dollars. On a non-GAAP basis, net loss came to six million dollars. First quarter net loss per share amounted to 3.81 dollars, compared with earnings per share of 0.09 dollars in the first quarter of 2024.
Yahoo
3 days ago
- Business
- Yahoo
Foot Locker (NYSE:FL) Reports Sales Below Analyst Estimates In Q1 Earnings
Footwear and apparel retailer Foot Locker (NYSE:FL) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 4.5% year on year to $1.79 billion. Its non-GAAP loss of $0.07 per share was significantly below analysts' consensus estimates. Is now the time to buy Foot Locker? Find out in our full research report. Revenue: $1.79 billion vs analyst estimates of $1.84 billion (4.5% year-on-year decline, 2.3% miss) Adjusted EPS: -$0.07 vs analyst estimates of -$0.02 (significant miss) Adjusted EBITDA: -$214 million vs analyst estimates of $52.35 million (-11.9% margin, significant miss) Operating Margin: -15.1%, down from 1% in the same quarter last year Free Cash Flow was -$61 million compared to -$18 million in the same quarter last year Locations: 2,363 at quarter end, down from 2,490 in the same quarter last year Same-Store Sales fell 2.6% year on year, in line with the same quarter last year Market Capitalization: $2.28 billion Mary Dillon, Chief Executive Officer said, "We are continuing to execute our Lace Up Plan strategies as we look forward to the successful completion of our transaction with DICK'S Sporting Goods. As we noted at the time we reported preliminary first quarter results, we experienced softer traffic trends globally that impacted our performance. During the quarter, we remained focused on the rollout of our Reimagined and Refresh programs to elevate our in-store experience, enhancing our digital offerings, deepening customer engagement through our FLX program and leveraging our strong brand partnerships to generate excitement for our customers. As we have executed these and other initiatives to further advance our strategy, our teams have also remained nimble to navigate the uncertain macroeconomic environment, including managing our promotional levels, inventories, and expenses and remaining disciplined with our cash flows." Known for store associates whose uniforms resemble those of referees, Foot Locker (NYSE:FL) is a specialty retailer that sells athletic footwear, clothing, and accessories. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. With $7.90 billion in revenue over the past 12 months, Foot Locker is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Foot Locker struggled to increase demand as its $7.90 billion of sales for the trailing 12 months was close to its revenue six years ago (we compare to 2019 to normalize for COVID-19 impacts). This was mainly because it closed stores and observed lower sales at existing, established locations. This quarter, Foot Locker missed Wall Street's estimates and reported a rather uninspiring 4.5% year-on-year revenue decline, generating $1.79 billion of revenue. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection doesn't excite us and implies its newer products will not catalyze better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. A retailer's store count influences how much it can sell and how quickly revenue can grow. Foot Locker operated 2,363 locations in the latest quarter. Over the last two years, the company has generally closed its stores, averaging 6.1% annual declines. When a retailer shutters stores, it usually means that brick-and-mortar demand is less than supply, and it is responding by closing underperforming locations to improve profitability. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. Foot Locker's demand has been shrinking over the last two years as its same-store sales have averaged 1.9% annual declines. This performance isn't ideal, and Foot Locker is attempting to boost same-store sales by closing stores (fewer locations sometimes lead to higher same-store sales). In the latest quarter, Foot Locker's same-store sales fell by 2.6% year on year. This performance was more or less in line with its historical levels. It was encouraging to see Foot Locker beat analysts' gross margin expectations this quarter. On the other hand, its revenue, EPS, and EBITDA fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock remained flat at $23.94 immediately after reporting. Is Foot Locker an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
3 days ago
- Business
- Yahoo
FOOT LOCKER, INC. REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
• Total Sales Down 4.6% Year-over-Year and Comparable Sales Down 2.6%• GAAP EPS Loss of $3.81 and Non-GAAP EPS Loss of $0.07• Continued Store Modernization Efforts with 69 Refreshes• Launched New Champs Sports and Kids Foot Locker Mobile Apps NEW YORK, May 29, 2025 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL) today reported financial results for its first quarter ended May 3, 2025. Mary Dillon, Chief Executive Officer said, "We are continuing to execute our Lace Up Plan strategies as we look forward to the successful completion of our transaction with DICK'S Sporting Goods. As we noted at the time we reported preliminary first quarter results, we experienced softer traffic trends globally that impacted our performance. During the quarter, we remained focused on the rollout of our Reimagined and Refresh programs to elevate our in-store experience, enhancing our digital offerings, deepening customer engagement through our FLX program and leveraging our strong brand partnerships to generate excitement for our customers. As we have executed these and other initiatives to further advance our strategy, our teams have also remained nimble to navigate the uncertain macroeconomic environment, including managing our promotional levels, inventories, and expenses and remaining disciplined with our cash flows." First Quarter Results Total sales were down 4.6%, to $1,788 million, as compared with sales of $1,874 million in the first quarter of 2024. Excluding the effect of foreign exchange rate fluctuations, total sales for the first quarter decreased by 4.5%. Comparable sales decreased by 2.6%, with comparable sales in the North American region decreasing by 0.5%. Comparable sales in the Company's international businesses decreased by 8.5%, led by softness in Foot Locker Europe. Please refer to the Sales by Banner table below for detailed sales performance by banner and region. Gross margin decreased by 40 basis points as compared with the prior-year period. Merchandise margins decreased by 10 basis points, while occupancy as a percentage of sales increased by 30 basis points as compared to the prior-year period. SG&A as a percentage of sales increased by 100 basis points as compared with the prior-year period, due to underlying deleverage on the sales decline and investments in technology which more than offset the cost optimization program and ongoing expense discipline. Compared to the prior year, SG&A dollars were down 0.7%. Net loss was $363 million, as compared with net income of $8 million in the prior-year period. On a non-GAAP basis, net loss was $6 million for the first quarter, as compared with net income of $21 million in the corresponding prior-year period. First quarter loss per share was $3.81, as compared with earnings per share of $0.09 in the first quarter of 2024. Non-GAAP loss was $0.07 per share in the first quarter, as compared with non-GAAP earnings per share of $0.22 in the corresponding prior-year period. Non-GAAP net loss and net loss per share exclude non-cash impairment charges totaling $276 million and primarily reflect a $140 million charge related to a tradename and a goodwill impairment charge of $110 million. Additionally, the Company recorded a full valuation allowance on its deferred tax assets and deferred tax costs related to certain of the Company's European business totaling $124 million, which is excluded from non-GAAP the tables below for the reconciliation of Non-GAAP measures. Balance Sheet At quarter-end, the Company had cash and cash equivalents of $343 million, and total debt was $445 million. As of May 3, 2025, the Company's merchandise inventories were $1,665 million, 0.4% higher than at the end of the first quarter last year. Excluding the effect of foreign currency fluctuations, merchandise inventories decreased by 0.7% as compared with the first quarter of last year. Store Base Update During the first quarter, the Company opened 9 new stores and closed 56 stores, including its stores that operated in South Korea, Denmark, Norway, Sweden, Greece, and Romania. Also during the quarter, the Company remodeled or relocated 11 stores and refreshed 69 stores to our updated design standards, which incorporate key elements of our current brand design specifications. As of May 3, 2025, the Company operated 2,363 stores in 20 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 236 licensed stores were operating in the Middle East, Europe, and Asia. Our licensed operations include the Greece and Romania business that was sold to our license partner in April 2025. Agreement to be Acquired by DICK'S As previously announced on May 15, 2025, Foot Locker and DICK'S Sporting Goods have entered into a definitive merger agreement under which DICK'S will acquire Foot Locker. In light of the pending transaction with DICK'S, Foot Locker will not be holding its previously scheduled conference call to discuss its first quarter 2025 results and will not be providing or updating previously issued financial guidance. Disclosure Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, financial objectives, dividend payments, stock repurchases, financial outlook, and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors, which are detailed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. Factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements herein include, but are not limited to, the occurrence of any event, change or other circumstance that could give rise to the right of us or DICK'S Sporting Goods, Inc. ("DICK'S") to terminate the Agreement and Plan of Merger by and among us, DICK'S and a wholly owned subsidiary of DICK'S ("Merger Sub") pursuant to which, among other things, Merger Sub would be merged with and into us (the "Transaction"); the outcome of any legal proceedings that may be instituted against us, including with respect to the Transaction; the possibility that the Transaction does not close when expected or at all because required regulatory or shareholder approvals or other conditions to closing are not received or satisfied on a timely basis or at all; reputational risk and potential adverse reactions of our customers, employees or other business partners; the diversion of our management's attention and time from ongoing business operations and opportunities due to the Transaction; and any other factors set forth in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended February 1, 2025, filed on March 27, 2025. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events, or otherwise. Foot Locker, Inc. Condensed Consolidated Statements of Operations (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts)First Quarter2025 2024Sales$ 1,788 $ 1,874Other revenue 65Total revenue 1,7941,879 Cost of sales 1,2801,335Selling, general and administrative expenses 458461Depreciation and amortization 5151Impairment and other 27614(Loss) income from operations (271)18 Interest expense, net (2)(1)Other income (expense), net 3(4)(Loss) income before income taxes (270)13Income tax expense 935Net (loss) income$ (363) $ 8 Diluted (loss) earnings per share$ (3.81) $ 0.09Weighted-average diluted shares outstanding 95.395.3Non-GAAP Financial Measures In addition to reporting the Company's financial results reported in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP financial measures that will be presented will exclude (i) gains or losses related to our minority investments, (ii) impairments and other, and (iii) certain tax matters that we believe are nonrecurring or unusual in nature. Certain financial measures are identified as non-GAAP, such as sales changes excluding foreign currency fluctuations, adjusted income before income taxes, adjusted net income, and adjusted diluted earnings per share. We present certain amounts as excluding the effects of foreign currency fluctuations, which are also considered non-GAAP measures. Where amounts are expressed as excluding the effects of foreign currency fluctuations, such changes are determined by translating all amounts in both years using the prior-year average foreign exchange rates. Presenting amounts on a constant currency basis is useful to investors because it enables them to better understand the changes in our business that are not related to currency movements. These non-GAAP measures are presented because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core business or affect comparability. In addition, these non-GAAP measures are useful in assessing our progress in achieving our long-term financial objectives and are consistent with how executive compensation is determined. Foot Locker, Inc. Non-GAAP Reconciliation (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts) We estimate the tax effect of all non-GAAP adjustments by applying a marginal tax rate to each item. The income tax items represent the discrete amount that affected the period. The non-GAAP financial information is provided in addition, and not as an alternative, to our reported results prepared in accordance with GAAP. The various non-GAAP adjustments are summarized in the tables below. Reconciliation of GAAP to non-GAAP results:First Quarter2025 2024Pre-tax (loss) income: (Loss) income before income taxes$ (270) $ 13Pre-tax adjustments excluded from GAAP:Impairment and other (1) 27614Other income / expense (2) (4)2Adjusted income before income taxes (non-GAAP)$ 2 $ 29 After-tax (loss) income: Net (loss) income$ (363) $ 8After-tax adjustments excluded from GAAP:Impairment and other, net of income tax benefit of $39 and $3 million, respectively (1) 23711Other income / expense, net of income tax expense of $- and $- million, respectively (2) (4)2Tax valuation allowance and deferred tax cost write off (3) 124—Adjusted net (loss) income (non-GAAP)$ (6) $ 21First Quarter2025 2024Earnings per share: Diluted (loss) earnings per share$ (3.81) $ 0.09Diluted per share amounts excluded from GAAP: Impairment and other (1) 2.480.11Other income / expense (2) (0.05)0.02Tax valuation allowance and deferred tax cost write off (3) 1.31—Adjusted diluted (loss) earnings per share (non-GAAP)$ (0.07) $ 0.22 Notes on Non-GAAP Adjustments:(1) Included in the first quarter of 2025 impairment and other caption were non-cash impairment charges of $140 million to write down the WSS tradename and $110 million of goodwill, as a result of a triggering event due to a reduction in the Company's stock price and resulting market capitalization, coupled with general macroeconomic factors. Additionally, the Company recorded $15 million in non-cash impairment charges of long-lived assets and right-of-use assets. In connection with the previously announced global headquarters relocation and the shutdown of the businesses in South Korea, Denmark, Norway, and Sweden, we recorded accelerated tenancy and lease termination charges of $8 million. The Company has closed all stores operating in those regions as it focuses on improving the overall results of its international operations. Finally, the Company recorded $3 million of reorganization costs primarily related to the announced closure and relocation of the Company's global headquarters and the shutdown the first quarter of 2024, impairment and other included a loss accrual for legal claims of $7 million and a $7 million impairment of long-lived assets and right-of-use assets related to the Company's decision to no longer operate, and to sublease, one of its larger underperforming stores in Europe. Foot Locker, Inc. Non-GAAP Reconciliation (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions, except per share amounts)Notes on Non-GAAP Adjustments (continued):(2) For the first quarter of 2025, other expense / income included a $5 million gain on the sale of the Greece and Romania businesses, partially offset by $1 million of our share of losses related to equity method the first quarter of 2024, other income / expense consisted of $2 million of our share of losses related to equity method investments. (3) In the first quarter of 2025, it was determined that due to recent weakness in market conditions, the ability to utilize the entirety of our European deferred tax asset was less likely than prior periods. Accordingly, the Company recorded a $117 million valuation allowance on all the deferred tax assets related to net operating loss carryforwards and deferred interest deductions related to certain of the Company's European business. The Company will continue to monitor the recoverability of deferred tax assets on a quarterly basis. Additionally, in connection with this assessment, the Company wrote off certain deferred tax costs of $7 million. Foot Locker, Inc. Sales by Banner (unaudited)Periods ended May 3, 2025 and May 4, 2024 (In millions)First Quarter2025 2024 ConstantCurrencies Comparable SalesFoot Locker$ 735 $ 759(2.6) % (0.9) % Champs Sports 261267(2.2)0.5Kids Foot Locker 183183—3.4WSS 160160—(4.6)North America 1,3391,369(1.9)(0.5)EMEA 346394(13.2)(10.2)Foot Locker 6672(4.2)(0.8)atmos 3739(7.7)(6.4)Asia Pacific 103111(5.4)(2.8)Total$ 1,788 $ 1,874(4.5) % (2.6) % Foot Locker, Inc. Condensed Consolidated Balance Sheets (unaudited) (In millions)May 3, May 4,2025 2024ASSETSCurrent assets: Cash and cash equivalents$ 343 $ 282Merchandise inventories 1,6651,659Other current assets 359414 2,3672,355Property and equipment, net 908910Operating lease right-of-use assets 2,0992,175Deferred taxes 41114Goodwill 661760Other intangible assets, net 230392Minority investments 115150Other assets 13791$ 6,558 $ 6,947 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities: Accounts payable$ 504 $ 515Accrued and other liabilities 433389Current portion of long-term debt and obligations under finance leases 55Current portion of lease obligations 499496 1,4411,405Long-term debt and obligations under finance leases 440441Long-term lease obligations 1,8901,984Other liabilities 179231Total liabilities 3,9504,061Total shareholders' equity 2,6082,886$ 6,558 $ 6,947 Foot Locker, Inc. Condensed Consolidated Statement of Cash Flows (unaudited) (In millions)Thirteen weeks endedMay 3, May 4,($ in millions)2025 2024From operating activities: Net (loss) income$ (363) $ 8Adjustments to reconcile net (loss) income to net cash from operating activities: Tradename intangible asset impairment 140—Impairment of goodwill 110—Deferred income taxes 69(5)Depreciation and amortization 5151Impairment of long-lived assets and right-of-use assets 237Share-based compensation expense 66Gain on sales of businesses (5)—Change in assets and liabilities: Merchandise inventories (110)(158)Accounts payable 118151Accrued and other liabilities —(3)Pension contribution (20)—Other, net (22)1Net cash (used in) provided by operating activities (3)58From investing activities: Capital expenditures (58)(76)Proceeds from sales of businesses 6—Net cash used in investing activities (52)(76)From financing activities: Shares of common stock repurchased to satisfy tax withholding obligations (2)(4)Payment of obligations under finance leases (2)(2)Proceeds from exercise of stock options —5Net cash used in financing activities (4)(1)Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash 42Net change in cash, cash equivalents, and restricted cash (55)(17)Cash, cash equivalents, and restricted cash at beginning of year 430334Cash, cash equivalents, and restricted cash at end of period$ 375 $ 317 Foot Locker, Count and Square Footage (unaudited)Store activity is as follows:February 1, May 3, Relocations/2025 Opened Closed 2025 RemodelsFoot Locker U.S. 677—1266520Foot Locker Canada 84—3811Champs Sports 383163781Kids Foot Locker 369—53642WSS 15111151—Footaction 1——1—North America 1,6652271,64024EMEA (1) 60871859739Foot Locker Pacific 96——9616Foot Locker Asia 11—11——atmos 30——301Asia Pacific 137—1112617Total 2,4109562,36380 Selling and gross square footage are as follows:May 4, 2024 May 3, 2025(in thousands)Selling Gross Selling GrossFoot Locker U.S. 2,3864,0492,3053,902Foot Locker Canada 257423254416Champs Sports 1,5082,3731,4432,274Kids Foot Locker 7761,2957451,258WSS 1,4581,7571,5781,900Footaction 3636North America 6,3889,9036,3289,756EMEA (1) 1,2102,4591,1592,378Foot Locker Pacific 246371254381Foot Locker Asia 5298--atmos 28482847Asia Pacific 326517282428Total 7,92412,8797,76912,562(1) Includes 7 Kids Foot Locker stores, and the related square footage, operating in Europe for both February 1, 2025 and May 3, 2025. Contacts: Kate Fitzsimons Investor Relations ir@ Parrish Joele Frank, Wilkinson Brimmer Katcher lparrish@ mediarelations@ View original content to download multimedia: SOURCE Foot Locker IR
Yahoo
20-05-2025
- Business
- Yahoo
How smart CMOs are turning marketing into a launchpad to the corner office
The path to the CEO seat has traditionally run through finance, operations, or legal. But as consumer behavior shifts, digital disruption accelerates, and brand trust becomes a strategic imperative, a new contender is rising: the chief marketing officer. The CMO-to-CEO leap is still rare—only about 10% of Fortune 250 CEOs have marketing backgrounds, according to Spencer Stuart, far fewer than those from finance or ops. But that number is growing, particularly in sectors like retail, consumer tech, media, and digital-first businesses, where customer experience and growth are core to strategy. Today's top marketers are no longer just brand stewards or ad buyers. They're responsible for growth, product, customer experience, digital transformation, and data. Their scope often expands into hybrid titles—chief growth officer, chief customer officer, president of revenue—making them viable candidates for the top job. Examples are mounting. Mary Dillon went from CMO of McDonald's to CEO roles at U.S. Cellular, Ulta Beauty, and now Foot Locker. Andrea Jung served as Avon's CMO before ascending to CEO, with a stop as COO in between. Kristin Dolan rose through media and marketing to become CEO of AMC Networks. Starbucks' Brian Niccol and McDonald's Chris Kempczinski both held senior marketing roles on their way to the corner office. Crucially, they weren't just running campaigns—they were running growth. And in industries where brand and product are inseparable, that distinction matters. What sets these marketing heads-turned-CEOs apart is operational credibility. Many owned P&L responsibility—a near-universal trait among CEOs—and led cross-functional teams across product, tech, and strategy. Their digital fluency, crisis communication chops, and mastery of brand narrative are also additive skills in a volatile business environment. Still, barriers persist. Some boards continue to view marketing as tactical rather than strategic, which may explain why CMOs have among the shortest tenures in the C-suite. A lack of exposure to finance or supply chain can also be a limiting factor for most. But the pipeline is widening. Of the Fortune 500 CMOs who left their roles last year, 10% became CEOs, per Spencer Stuart. And 37% of current Fortune 500 CEOs have some functional experience in marketing. The takeaway: The modern marketing leader—fluent in digital, steeped in growth, and wired for customer insight—is no longer a long shot for the top job. Because in today's economy, a CEO isn't just a strategist. They're a storyteller, too. On that note, my Fortune colleagues and I will be hosting our flagship event at Cannes Lions this June, bringing together the world's most influential minds for thought-provoking conversations on what's next in creativity, innovation, and leadership. For speaker inquiries, contact Naomi Cykiert at feel free to shoot me a line. Hope to see you there. Ruth This story was originally featured on
