Note 2 - Revenue

9 Months Ended

Oct. 28, 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				Thirty-nine weeks ended
	October 28,		October 29,		October 28,		October 29,
($ in millions)	2023		2022		2023		2022
Sales by Channel
Stores	$	1,649	$	1,818	$	4,834	$	5,310
Direct-to-customers		337		355		940		1,103
Total sales		1,986		2,173		5,774		6,413
Licensing revenue		3		3		10		9
Total revenue	$	1,989	$	2,176	$	5,784	$	6,422

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				Thirty-nine weeks ended
	October 28,		October 29,		October 28,		October 29,
($ in millions)	2023		2022		2023		2022
Revenue by Geography
United States	$	1,343	$	1,503	$	3,807	$	4,433
International		646		673		1,977		1,989
Total revenue	$	1,989	$	2,176	$	5,784	$	6,422

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

	Thirteen weeks ended				Thirty-nine weeks ended
	October 28,		October 29,		October 28,		October 29,
($ in millions)	2023		2022		2023		2022
Foot Locker	$	796	$	852	$	2,244	$	2,411
Champs Sports		311		406		932		1,266
Kids Foot Locker		189		181		502		516
WSS		163		162		458		438
Other (1)		1		21		1		111
North America		1,460		1,622		4,137		4,742
Foot Locker (2)		407		392		1,202		1,173
Sidestep		—		20		26		69
EMEA		407		412		1,228		1,242
Foot Locker		81		99		281		292
atmos		38		40		128		137
Asia Pacific		119		139		409		429
Total sales	$	1,986	$	2,173	$	5,774	$	6,413

(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 16 Kids Foot Locker stores operating in Europe for  October 28, 2023 and October 29, 2022, respectively.

2. Revenue (continued)

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.

	October 28,			October 29,
($ in millions)	2023			2022
Gift card liability at beginning of year	$	36		$	46
Redemptions		(225	)		(187	)
Breakage recognized in sales		(10	)		(12	)
Activations		215			178
Foreign currency fluctuations		(1	)		—
Gift card liability	$	15		$	25

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