Foot Locker, Inc. (FL): Business Model Canvas [Dec-2025 Updated]

You're looking at a major retailer in the middle of a significant pivot, trying to prove its relevance while executing a major strategic overhaul. This Business Model Canvas captures Foot Locker, Inc. right as it's deep into the 'Lace Up' plan, just before the DICK'S Sporting Goods acquisition closed, so the structure reflects near-term risk and opportunity. We see a massive physical footprint-roughly 2,354 owned stores as of August 2, 2025-being actively modernized, all while direct-to-customer sales grew 10.6% in Q2 2025 and the company targets $60 million to $70 million in cost savings this year. Honestly, understanding how they balance exclusive Nike access with growing allocations to brands like Hoka and On is key to seeing where the next dollar comes from; check out the full breakdown below to see the mechanics of their current operation.

Foot Locker, Inc. (FL) - Canvas Business Model: Key Partnerships

You're looking at the partnerships that define Foot Locker, Inc.'s current market position, especially following the September 2025 acquisition by DICK'S Sporting Goods. This section details the critical relationships that drive product flow and marketing reach.

Strategic relationship with Nike/Jordan Brand for exclusive product

The relationship with Nike remains central, though the dynamic has shifted over time. Under the current leadership, Foot Locker, Inc. is actively rebuilding this core tie. The company is expanding its Home Court basketball sections, which are developed in partnership with Nike, with plans to roll out this concept to 100 stores worldwide by 2026.

The historical reliance on Nike is a key context point; Nike products once accounted for about 75% of Foot Locker's total purchases, a share that had dropped below 60% by 2022. As of August 2025 fieldwork, Nike running shoes were restored to 'pole position' in men's sections, placed ahead of On, Hoka, Adidas, and New Balance. The collaboration also includes 'The Clinic' program, a first-of-its-kind activation launched with Nike and Jordan Brand during NBA All-Star 2024.

Here's a snapshot of brand standing based on a July 2025 survey:

Multi-year marketing partnership with the NBA and Chicago Bulls

Foot Locker, Inc. is doubling down on basketball culture through league and team alignments. The company entered a multi-year agreement with the NBA, establishing itself as an official marketing partner in the U.S. This was followed by a multi-year partnership with the Chicago Bulls ahead of the 2024-2025 NBA season.

Key elements of the Chicago Bulls partnership include:

• Foot Locker being the presenting partner for the 2025 Bulls Fest.
• Hosting community-focused events at Chicago stores, such as the State Street location on November 2, featuring player meet-and-greets.
• Launching a co-branded social media series, the "Tunnel Walk," offering behind-the-scenes player content.
• Fan activations at the United Center, including presenting the game ball at the October 30 game.

This focus aligns with the 'Lace Up' initiative, which aimed to boost annual revenue to over $9.5B by 2026.

Growing allocation with non-Nike brands like New Balance, On, and Hoka

A key strategic pillar involves diversifying the product mix beyond the largest partner. Entering 2025, Foot Locker, Inc. confirmed it was continuing door and allocation growth plans with brands like New Balance, On, and Hoka, alongside others like adidas, Crocs, UGG, and Timberland. This diversification is a direct response to consumer demand for choice and the need to better position the retailer as a 'true house of brands.'

Performance data from late 2024 showed this strategy paying off while Nike experienced softness. In Q3 2024, footwear comparable sales grew in the high single-digits, led by strong results from Adidas, New Balance, On, Hoka, Ugg, and Asics.

DICK'S Sporting Goods, the new parent company, for operational synergy

The acquisition by DICK'S Sporting Goods, completed in September 2025 for $2.4 billion, is fundamentally reshaping the partnership landscape. The primary financial driver for this consolidation is the expected realization of cost synergies. Management projects annual cost synergies between $100 million to $125 million, mainly derived from optimized supply chain operations and procurement efficiencies.

The integration is not without near-term cost; the company expects $500-$750 million in pre-tax charges related to store closures, asset review, and inventory cleanup. As a combined entity, DICK'S Sporting Goods reported fiscal year 2025 revenue of $13.44 billion. The combined footprint now spans over 3,200 stores plus e-commerce across 20 countries.

Finance: draft 13-week cash view by Friday.

Foot Locker, Inc. (FL) - Canvas Business Model: Key Activities

You're looking at the core actions Foot Locker, Inc. (FL) is taking right now to make the business work, especially as they navigate the final stages of their major transformation plan. Honestly, Key Activities are what the company has to do well to deliver on its promises.

Executing the 'Lace Up' strategic plan for portfolio optimization

The 'Lace Up' plan, which started in 2023, is all about making the portfolio tighter and stronger. This involves reshaping the real estate footprint by shifting away from underperforming malls and focusing on core banners like Foot Locker and Kids Foot Locker. A major part of this optimization is the planned closure of about 400 mall-based Foot Locker locations by 2026. The strategy is to concentrate resources on high-impact stores that serve as cultural magnets.

The execution of this optimization is visible in the store count changes reported through Q2 2025:

Store fleet modernization: 300 Refreshes and 80 Reimagined stores in 2025

A massive undertaking is the physical upgrade of the store base. The goal for the full year 2025 is to complete 300 smaller-scale refreshes and open or convert 80 of the new 'reimagined' store concepts. This is a significant acceleration of the new format rollout.

Looking at the progress through the second quarter of 2025, the company reported specific activity:

• Stores refreshed in Q2 2025: 52.
• Reimagined stores opened in Q2 2025: 11, including the first two Champs Sports locations.

By the end of 2025, Foot Locker, Inc. expects about two-thirds of its global Foot Locker and Kids Foot Locker fleet to be refreshed.

Global supply chain and inventory management for $1.709 billion in Q2 2025 inventory

Managing product flow is critical, especially with the strategic shift in product timing. As of August 2, 2025, the merchandise inventories stood at $1,709 million. This level was 3.7% higher than the end of the second quarter last year, which management attributed partly to a strategic pull-forward of fall product. Excluding foreign currency effects, merchandise inventories were up 2.7% compared to the prior year period. This activity directly supports the in-store experience by ensuring the right product is available, even if it means carrying a slightly higher balance sheet load temporarily.

Enhancing the FLX loyalty program and digital platforms

Deepening customer relationships through the FLX program and digital channels remains a key focus. In Q2 2025, Foot Locker, Inc. successfully launched an enhanced FLX Rewards Program in Europe. On the digital front, the company has been working to improve its e-commerce capabilities. At one point, digital sales penetration was reported around 20%, with another data point showing it rising to 15.9% during the acceleration phase of the Lace Up Plan.

Cost optimization program targeting $60 million to $70 million in savings for 2025

Controlling operating expenses is a deliberate activity supporting the turnaround. The company has a stated cost optimization program targeting savings between $60 million and $70 million for the 2025 fiscal year [as outlined in your requirements]. The impact of this discipline was reflected in the Q2 2025 results, where Selling, General, and Administrative (SG&A) dollars decreased by 1.7% compared to the prior year period, despite investments in technology.

Foot Locker, Inc. (FL) - Canvas Business Model: Key Resources

You're looking at the core assets Foot Locker, Inc. (FL) relies on to execute its strategy as of late 2025. These aren't just line items on a balance sheet; they are the engines driving customer engagement and market presence, especially as the company navigates its acquisition by DICK'S Sporting Goods.

The physical footprint remains a massive, tangible resource, though it is actively being optimized. As of the second quarter end, specifically August 2, 2025, Foot Locker, Inc. operated 2,354 owned stores across 20 countries, complemented by 243 licensed stores. This network is undergoing a significant transformation, simplifying the footprint while elevating the remaining locations.

Here's a quick look at the store base evolution and planned capital deployment for 2025:

The brand equity and authority within global sneaker culture is an intangible, yet critical, resource. This is being actively reinforced by investing in the physical experience. The company aimed to convert two-thirds of its fleet to the updated store format by the end of 2025. Furthermore, digital penetration is targeted to hit 25% of sales by 2026, up from 21.8% in Q4 2024.

The FLX Rewards Program is a key mechanism for capturing customer value and driving frequency. The revamped program saw significant success in 2024.

• Loyalty sales capture reached 33% in fiscal 2024, up from 23% in 2023.
• The program aims for 50% loyalty penetration by 2026.
• Members earn 100 points for every $1 spent.
• Points are redeemable for FLX Cash discounts of $5, $10, or $20 off.
• Perks include free shipping with no minimums and free product returns for top tiers.

Finally, the human capital, embodied by the knowledgeable in-store staff known as 'Stripers,' is central to the elevated experience in the new formats. These associates are being trained to harness the power of the Reimagined store environments to enhance brand storytelling and customer interaction. The focus on associate education and training contributed to conversion increases in stores year-to-date in Q3 2024.

Finance: draft 2026 loyalty penetration impact analysis by Friday.

Foot Locker, Inc. (FL) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Foot Locker, Inc. over other places to buy their athletic gear. It's about what they offer that others can't easily copy, especially as the company navigates its portfolio optimization strategy.

Curated, multi-brand assortment of premium athletic footwear and apparel.

Foot Locker, Inc. positions itself as a global leader in sneaker culture, a status it celebrated its 50th year achieving in fiscal 2024. The value here is the selection-it's not just about volume, but about curation across top brands, though the partnership with Nike remains the largest driver of sales. The digital channel is a key focus for expanding this assortment reach, with a target of 25% of total sales coming from digital by 2026, up from 21.8% at the end of Q4 2024.

Here's a look at the revenue mix and inventory management efforts:

Access to exclusive, limited-edition product releases and collaborations.

Being at the heart of sneaker culture means getting access to the must-have drops. The company actively leverages its multi-brand leadership to drive greater choice for consumers. This focus on scarcity and newness is a core differentiator. For instance, the start of fiscal 2025 included one of the company's largest basketball activations at NBA All-Star 2025.

Elevated, immersive in-store shopping experience via Reimagined concepts.

Foot Locker, Inc. is heavily investing in reshaping its physical footprint to create a more consistent and elevated brand experience, moving away from lower-tier malls. The 'Reimagined' concept is central to this, designed to enhance brand storytelling in a visually elevated environment. The company is executing this through a dual strategy of refreshes and new concept rollouts.

The 2025 plan for physical space elevation is aggressive:

• Plan to open or convert 80 'Reimagined' concept locations in 2025.
• Plan to refresh another 300 stores in 2025.
• Total store refreshes planned over two-and-a-half years reaching 800 by the end of 2025.
• Goal to bring 65% of global Foot Locker and Kids Foot Locker footage up to Brand Standard by the end of 2026.
• The company plans to close approximately 110 locations in 2025 while opening 20 new ones, aiming for a 'tighter, stronger store base'.

Position as a cultural hub for the youth and sneakerhead community.

The brand's value proposition extends beyond transactions into community building and loyalty. The enhanced FLX Rewards Program is a key tool here, showing significant traction in 2024. Furthermore, the Foot Locker Foundation actively invests in the communities where its teams live and work.

Here are the concrete numbers showing community and loyalty engagement:

• FLX Rewards loyalty sales capture rate hit 33% in 2024, up from 23% in 2023.
• Loyalty penetration reached 49% in Q4 of 2024.
• The FLX program rollout is planned for Europe in 2025.
• The LISC/Foot Locker Foundation program has deployed nearly $5.2 million to date.
• This foundation work has empowered 27,000 youth and built the capacity of 68 local nonprofits.
• More than 95% of customers engage with the brand online in some capacity.

The foundation grants for 2025 range from $25,000 to $75,000 for programming, or $25,000 to $100,000 for capital improvements. Finance: draft 2026 community investment projection by end of Q1 2026.

Foot Locker, Inc. (FL) - Canvas Business Model: Customer Relationships

You're focused on how Foot Locker, Inc. keeps customers coming back, which is all about making every touchpoint count, from the app to the store floor. Here's the breakdown of their relationship strategy as we see it in late 2025.

Enhanced FLX Rewards Program for personalized offers and access

The FLX Rewards Program is central to locking in loyalty. After a successful pilot in Canada in 2023, the enhanced U.S. version, launched in 2024, is showing real traction. Foot Locker, Inc. aims to hit 50 percent loyalty penetration by 2026, with a long-term target of 70 percent. The program is expanding its reach, with a planned rollout in Europe during 2025. Members get tangible benefits that drive them back, like FLX Cash to unlock savings, priority access to sneaker launches, and free returns.

The results from 2024 show the program's growing influence:

• Loyalty sales capture rate reached 33 percent in 2024, up from 23 percent in 2023.
• North America saw loyalty program members account for 49 percent of sales in the fourth quarter of 2024.
• The Canadian pilot saw increased engagement with first-time redeemers, higher average order values, and higher trip frequency.

High-touch, expert-driven service from in-store associates

Foot Locker, Inc. knows that even with digital growth, the physical store experience, powered by their associates, the Stripers, is key. They are investing heavily in the physical footprint to support this. They planned 80 new 'Reimagined' doors for 2025, adding to the 8 already operating across North America, Europe, Asia, and Australia as of February 1, 2025. This is paired with a continued store refresh program, with 300 more refreshes planned for 2025, following 407 completed in 2024. As of February 1, 2025, 44 percent of their gross store square footage met the current brand standard.

The associates are the human element in this elevated space. While the average annual pay for a Foot Locker Retail Store Associate in the U.S. as of late 2025 is estimated around $28,803, or about $13.85 an hour, the value they bring is in expertise and connection. Employee feedback highlights that 'customer connections' and meeting new personalities are among the best parts of the job.

Here's a snapshot of the physical experience investment:

Community engagement through local events and basketball activations

Foot Locker, Inc. uses its position in sneaker culture to connect locally, primarily through the Foot Locker Foundation. The LISC/Foot Locker Foundation Community Empowerment Program is a key vehicle for this. This initiative has, to date, deployed nearly $5.2 million to empower over 27,000 youth and support 68 local nonprofits. The program offers two grant types, with awards ranging from $25,000 to $75,000 for programming and $25,000 to $100,000 for capital improvements. The program targets organizations in 14 specific U.S. cities. Beyond grants, the company leverages major cultural moments; they started the year with one of their largest basketball activations at NBA All-Star 2025.

Digital personalization to drive repeat business and loyalty

The digital relationship is being fortified by personalization efforts, which are critical since 90 percent of the shopping journey starts online, even if 82 percent of transactions finish in-store. The revamped mobile app, launched in late 2024, immediately drove performance gains, with digital comparable sales up 12.4 percent in the fourth quarter of 2024. The company is targeting 25 percent digital penetration by 2026, building on a 12 percent surge in digital comparable sales in 2024. The app enhances the experience with features like 'Store Mode,' allowing in-store shoppers to scan products for availability.

These digital enhancements directly feed into loyalty and repeat business:

• The new app helped drive an increase in traffic, average order value (AOV), and conversion in Q4 2024.
• The company is focused on increasing engagement through the FLX program across its new Champs Sports and Kids Foot Locker mobile apps in 2025.
• Loyalty members generally have higher average order values than non-loyalty customers.

If onboarding new app users takes longer than expected, churn risk rises.

Foot Locker, Inc. (FL) - Canvas Business Model: Channels

You're looking at how Foot Locker, Inc. gets its product to the customer as of late 2025. It's a mix of physical presence and digital reach, with some significant streamlining happening.

Global physical retail stores (Foot Locker, Champs Sports, WSS, Kids Foot Locker)

The physical footprint is actively being optimized under the Lace Up Plan. As of August 2, 2025, Foot Locker, Inc. operated a total of 2,354 stores across 20 countries in North America, Europe, Asia, Australia, and New Zealand. This number reflects ongoing rationalization, as the company had previously announced plans to close or transfer operations for approximately 629 stores in Europe and about 30 stores in Asia Pacific by mid-2025. For instance, during the second quarter of 2025 alone, the company closed 11 stores while opening 2 new ones. The focus is on elevating the experience in the remaining doors; in Q2 2025, 52 stores were refreshed and 14 were remodeled or relocated. The plan included launching the 'Reimagined' concept within 300 stores in 2025. As of February 1, 2025, the breakdown showed specific banner footprints, though the latest August 2025 data is more current for the total count.

Here's a look at the store base changes around the end of 2024 and into 2025:

The selling square footage for the Foot Locker U.S. banner was 2,337 thousand square feet as of February 1, 2025, with 677 physical locations remaining after closures and relocations that quarter. Champs Sports had 1,466 thousand square feet of selling space across 383 stores at that same date.

Direct-to-customer (DTC) e-commerce platforms (footlocker.com)

Foot Locker, Inc. uses its websites, including footlocker.com, to offer its largest product selections and bridge the digital and physical worlds using omni-channel capabilities like buy online and pickup-in-store. The company continues to target about 25% digital penetration by 2026. The loyalty program, FLX, is a key driver here; its sales capture rate reached 33% in 2024, peaking at 49% penetration in the fourth quarter of 2024.

Dedicated mobile apps for key banners like Champs Sports

Digital engagement is supported by dedicated mobile applications. In the first quarter of 2025, Foot Locker, Inc. enhanced its digital offerings, which included the launch of new mobile apps for Champs Sports and Kids Foot Locker across the US. The FLX Rewards Program also saw a planned rollout in Europe during 2025, building on its success in the US.

International licensed store operations in the Middle East and Asia

The international channel is shifting toward licensing partnerships to simplify operations in certain regions. As of August 2, 2025, there were 243 licensed stores operating in the Middle East, Europe, and Asia. This expansion is highlighted by agreements with the Fourlis Group to take over and expand operations in Greece and Romania, with a joint vision for over 100 stores in that region over the next several years. This contrasts with the planned closure or transfer of operations for approximately 30 stores in the Asia Pacific region by mid-2025, including exiting South Korea.

Finance: review the Q3 2025 international sales data against the licensed store growth rate by end of month.

Foot Locker, Inc. (FL) - Canvas Business Model: Customer Segments

You're looking at the core groups Foot Locker, Inc. targets as of late 2025, right before the Dick's Sporting Goods acquisition closes. The customer base is being actively managed through the Lace Up Plan, balancing core authority with broader appeal.

Core Sneaker Enthusiasts and Youth Culture (15-25 year old males)

This group remains central, driving performance in the flagship banners. The Foot Locker and Kids Foot Locker banners showed strength, delivering a comparable sales growth of 3.6% in the fourth quarter of fiscal 2024. The company is deepening relationships with this segment through exclusive experiences, like The Clinic with Jordan Brand, in select Reimagined store locations. Loyalty is key here; the revamped FLX Rewards Program hit a sales capture rate of 33% across the base in 2024, peaking at 49% penetration in the fourth quarter of 2024.

Broader Athletic Lifestyle Consumers (expanding to 15-35 year olds)

Foot Locker, Inc. is working to capture a wider audience beyond the core enthusiast. Overall comparable sales growth for fiscal 2025 is forecast to be between 1% and 2.5%. Digital channels are crucial for reaching this broader group, with digital penetration reaching 18.2% of total sales in 2024, up from 17.2% in 2023. The company operates a fleet of 2,354 stores as of August 2, 2025, down from 2,410 stores at the start of the year on February 1, 2025, reflecting a move toward an optimized fleet.

Women's Athletic Footwear and Apparel segment (fastest-growing category)

This is a major focus area for new customer acquisition. The women's category was cited as the fastest growing category in fiscal 2024. The strategy involves inviting new customers into the category and strengthening partnerships with key suppliers like Nike to ensure product flow. While specific revenue contribution is not broken out here, the focus on this segment is a clear strategic pivot to diversify the customer base.

Value-conscious consumers responding to promotional activity

Demand from this group is highly event-driven and sensitive to the promotional environment. In the third quarter ending November 2, 2024, total revenue fell to $1.96 billion from $1.99 billion the prior year, with a net loss of $33 million. Leadership noted that consumers were holding back spending outside of key selling periods like Back-to-School and Thanksgiving week. The company is actively managing this by aiming for gross margin expansion of 40 to 80 basis points in fiscal 2025, supported by reduced markdowns and increased full-price selling. Nike, the largest partner, still accounted for about 60% of sales as of late 2024, meaning softness in this segment directly impacts the value-driven consumer's willingness to purchase.

Here's a quick look at some operational metrics relevant to reaching these segments as of mid-2025:

The company is also working to diversify its brand mix, with a goal for non-Nike products to exceed 40% of sales by 2026, up from a previous goal of 36%.

Finance: draft 13-week cash view by Friday.

Foot Locker, Inc. (FL) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the operations for Foot Locker, Inc. as of late 2025, based on the most recently reported full-year 2024 figures and the 2025 outlook. These numbers show where the dollars are primarily going to keep the global fleet running and the merchandise flowing.

High Cost of Goods Sold (COGS) due to branded merchandise procurement.

The cost of the sneakers and apparel Foot Locker, Inc. buys from brands like Nike, Adidas, and HOKA represents the single largest cost component. For the fiscal year 2024, the Gross Margin Rate stood at 28.9%. This means that for every dollar of sales, approximately 71.1 cents went to the Cost of Goods Sold (COGS). This high percentage reflects the wholesale cost of premium, branded athletic products. The company saw sequential improvement in merchandise margin recapture in Q4 2024, despite an elevated promotional environment.

The cost structure related to inventory is significant, and you can see the pressure in the historical trend:

• Fiscal Year 2022 Gross Margin Rate: 31.9%
• Fiscal Year 2024 Gross Margin Rate: 28.9%

Significant operating lease expenses for the global store fleet.

The physical footprint is a major fixed cost. As of February 1, 2025, the total operating lease liabilities were reported at $2,338 million. The weighted-average remaining lease term for these operating leases was 6.2 years, with a weighted-average discount rate of 5.6%. The company operated 2,410 stores at the end of fiscal year 2024 across its primary geographies. Occupancy costs, which include fixed operating lease costs, were reported as flat as a percentage of sales in the fourth quarter of 2024 compared to the prior year period.

The allocation of these lease costs flows through two main areas:

Capital expenditures for store modernization (Refreshes and Reimagined doors).

Foot Locker, Inc. is actively spending capital to upgrade its stores, a key part of the Lace Up Plan. The Capital Expenditures (CapEx) for fiscal year 2024 totaled $240 million. For the fiscal year 2025 outlook, CapEx is expected to moderate slightly to $300 million, with a focus on high-return store investments. This investment supports the physical refresh program, where over 400 store refreshes were completed in 2024.

The 2025 CapEx plan specifically earmarks approximately $30 million for technology investments, which also supports supply chain and store remodels.

Selling, General, and Administrative (SG&A) expenses, including technology investments.

SG&A is the basket for overhead, marketing, and technology spending. For the full fiscal year 2024, total SG&A expenses were $1,920 million. As a percentage of sales, this expense base was 24.1% for FY2024, an increase from 22.7% in FY2023. The increase in the SG&A rate in Q4 2024 was partially due to investments in technology and brand-building, even as the overall rate improved by 10 basis points year-over-year due to cost optimization savings.

You can see the quarterly pressure on this line item:

• Q3 2024 SG&A: $482 million
• Technology investments are a recurring component, with a portion reflected in operating cash flows as Software-as-a-Service (SaaS) contracts.

Finance: draft 13-week cash view by Friday.

Foot Locker, Inc. (FL) - Canvas Business Model: Revenue Streams

You're looking at how Foot Locker, Inc. (FL) actually brings in the money, especially now that DICK'S Sporting Goods has closed on the acquisition in September 2025. The revenue streams are shifting, but the core business remains product sales.

The primary source is, as you'd expect, the Sales of athletic footwear and apparel through retail stores. This is the bread and butter, even with the new ownership structure. Looking at the final full-year data before the acquisition closed, store sales for the fiscal year ended February 1, 2025, totaled $6,517 million. This is the foundation of the revenue model, though its relative importance is changing as digital channels mature.

The shift to digital is clear in the Direct-to-Customer (DTC) channel. For the second quarter of 2025, the DTC segment showed strong momentum, with a reported increase of 10.6%. This digital growth helps offset some of the softness seen in physical locations, particularly internationally. For context, total sales for FL in Q2 2025 were $1,851 million, down 2.4% year-over-year, but North American comparable sales did manage a positive increase of 1.4%.

Following the acquisition on September 8, 2025, the revenue reporting now reflects the Foot Locker Business as a segment within the larger entity. For the third quarter of 2025, the Net sales contribution from the Foot Locker Business was reported at $930.9 million. This figure represents the revenue generated by the acquired banners during that partial quarter.

Here's a quick look at the channel breakdown using the latest pre-acquisition full-year data and the Q3 post-acquisition segment contribution:

Finally, there is Licensing revenue from international operations in certain markets. This is a smaller, but strategic, component. As of the last full report, licensing revenue was $17 million for the 2024 fiscal year. You should note that the company was actively simplifying its international footprint in 2025, transferring ownership of operations like Greece and Romania to a licensing partner, Fourlis Group, by mid-2025. This transfer activity means the nature and amount of this revenue stream are definitely in flux as we head into 2026.

The key revenue drivers you need to watch are:

• Physical Store Performance: The core revenue base, with ongoing investment in Reimagined store formats.
• Digital Acceleration: The 10.6% DTC growth in Q2 2025 shows digital traction.
• Post-Acquisition Contribution: The $930.9 million Q3 segment sales set the new baseline.
• International Licensing: A small but evolving stream following the divestiture of company-operated stores in markets like South Korea, Denmark, Norway, and Sweden by mid-2025.

Finance: draft 13-week cash view by Friday.