Note 2 - Revenue

6 Months Ended

Jul. 29, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2. Revenue

The table below presents sales disaggregated by sales channel, as well as licensing revenue earned from our various franchised arrangements. Sales are attributable to the channel in which the sales transaction is initiated.

	Thirteen weeks ended				Twenty-six weeks ended
	July 29,		July 30,		July 29,		July 30,
($ in millions)	2023		2022		2023		2022
Sales by Channel
Stores	$	1,572	$	1,716	$	3,185	$	3,492
Direct-to-customers		289		349		603		748
Total sales		1,861		2,065		3,788		4,240
Licensing revenue		3		3		7		6
Total revenue	$	1,864	$	2,068	$	3,795	$	4,246

Revenue is attributed to the country in which the transaction is fulfilled, and revenue by geographic area is presented in the following table.

	Thirteen weeks ended				Twenty-six weeks ended
	July 29,		July 30,		July 29,		July 30,
($ in millions)	2023		2022		2023		2022
Revenue by Geography
United States	$	1,177	$	1,386	$	2,464	$	2,930
International		687		682		1,331		1,316
Total revenue	$	1,864	$	2,068	$	3,795	$	4,246

Sales by banner and operating segment are presented in the following table.

	Thirteen weeks ended				Twenty-six weeks ended
	July 29,		July 30,		July 29,		July 30,
($ in millions)	2023		2022		2023		2022
Foot Locker	$	704	$	752	$	1,448	$	1,559
Champs Sports		293		406		621		860
Kids Foot Locker		146		155		313		335
WSS		145		138		295		276
Other (1)		—		37		—		90
North America		1,288		1,488		2,677		3,120
Foot Locker (2)		416		404		795		781
Sidestep		12		25		26		49
EMEA		428		429		821		830
Foot Locker		102		100		200		193
atmos		43		48		90		97
Asia Pacific		145		148		290		290
Total sales	$	1,861	$	2,065	$	3,788	$	4,240

(1)	Other includes sales from banners that we no longer operate and primarily represented Eastbay in the prior-year period.
(2)	Includes sales from 14 and 15 Kids Foot Locker stores operating in Europe for July 29, 2023 and July 30, 2022, respectively.

Contract Liabilities

We sell gift cards, which do not have expiration dates. Revenue from gift card sales is recorded when the gift cards are redeemed by customers. Breakage income is recognized as revenue in proportion to the pattern of rights exercised by the customer. The table below presents the activity of our gift card liability balance.

	July 29,			July 30,
($ in millions)	2023			2022
Gift card liability at beginning of year	$	36		$	46
Redemptions		(138	)		(120	)
Breakage recognized in sales		(9	)		(8	)
Activations		133			115
Foreign currency fluctuations		—			(1	)
Gift card liability	$	22		$	32

We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant.