Note 2 - Revenue

12 Months Ended

Feb. 03, 2024

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 licensed arrangements. Sales are attributable to the channel in which the sales transaction is initiated.

($ in millions)	2023		2022		2021
Sales by Channel:
Stores	$	6,751	$	7,219	$	7,029
Direct-to-customers		1,403		1,528		1,929
Total sales		8,154		8,747		8,958
Licensing revenue		14		12		10
Total revenue	$	8,168	$	8,759	$	8,968

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

($ in millions)	2023		2022		2021
Revenue by Geography:
United States	$	5,409	$	5,981	$	6,477
International		2,759		2,778		2,491
Total revenue	$	8,168	$	8,759	$	8,968

For the year ended February 3, 2024, the countries that comprised the majority of the revenue for the international category were Canada, France, Italy, Australia, and Germany. No other individual country included in the international category was significant.

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

($ in millions)	2023		2022		2021
Foot Locker	$	3,205	$	3,304	$	3,295
Champs Sports		1,304		1,681		1,939
Kids Foot Locker		716		708		724
WSS		640		604		195
Other		1		126		742
North America		5,866		6,423		6,895
Foot Locker		1,697		1,628		1,565
Sidestep		26		94		76
EMEA		1,723		1,722		1,641
Foot Locker		387		414		373
atmos		178		188		49
Asia Pacific		565		602		422
Total sales	$	8,154	$	8,747	$	8,958

Contract Liabilities

The table below presents the activity of our gift card liability balance:

	February 3,			January 28,
($ in millions)	2024			2023
Gift card liability at beginning of year	$	36		$	46
Redemptions		(278	)		(259	)
Breakage recognized in sales		(6	)		(17	)
Activations		277			266
Gift card liability	$	29		$	36

We elected not to disclose the information about remaining performance obligations since the amount of gift cards redeemed after 12 months is not significant for both 2023 and 2022.

We have integrated all available shopping channels including stores, websites, apps, and social channels. Store sales are primarily fulfilled from the store’s inventory but may also be shipped from our distribution centers or from a different store location if an item is not available at the original store. Direct-to-customer orders are generally shipped to our customers through our distribution centers but may also be shipped from a store or a combination of our distribution centers and stores depending on the availability of particular items.

Our operating segments are identified according to how our business activities are managed and evaluated by our chief operating decision maker, our CEO. We have three operating segments, North America, EMEA (Europe, Middle East, and Africa), and Asia Pacific. Our North America operating segment includes the results of the following banners in the U.S. and Canada: Foot Locker, Kids Foot Locker, Champs Sports, and WSS, including each of their related e-commerce businesses, as well as banners we previously operated including Lady Foot Locker, Footaction, and the Eastbay business that included internet, catalog, and team sales. Our EMEA operating segment includes the results of the following banners in Europe: Foot Locker and Kids Foot Locker, including each of their related e-commerce businesses, as well as the Sidestep banner we previously operated. Our Asia Pacific operating segment includes the results of Foot Locker in Australia, New Zealand, and Asia and atmos operating primarily in Japan, as well as their related e-commerce businesses. Additionally, the EMEA and Asia Pacific operating segments include licensing revenue. We further aggregated these operating segments into one reportable segment based upon their shared customer base and similar economic characteristics.