At Foot Locker, Are More Executive Changes Ahead? Analysts Weigh In

This week, Foot Locker, Inc. promoted Franklin Bracken to the role of president to help accelerate the execution of its Lace Up Plan, the company’s strategy announced in 2023 to elevate the omni-retail experience, enhance productivity and create long-term shareholder value.

With the announcement, the company said Bracken, who most recently served as executive vice president and chief commercial officer at the retailer, would continue reporting to Mary Dillon, Foot Locker Inc.’s chief executive officer.

But some footwear insiders were left wondering if this move was a sign that more changes were coming from the retailer. Williams Trading analyst Sam Poser is one of those voices, stating in a note on Thursday that he believes Bracken’s promotion “indicates further changes in Foot Locker’s C-suite.”

In his note, Poser called out that the terms of Dillon’s employment agreement with Foot Locker is from Aug. 19, 2022, through Jan. 31, 2026, and will automatically renew for one year unless either Foot Locker Inc. notifies Dillon, or she notifies the company at least 180 days before the end of her contract (which would be Aug. 4, 2025) that they intend to end the employment agreement.

“Management said to us that Dillon remains CEO, and fully committed to the implementation of the Lace Up Plan, and that Bracken’s promotion represents the recognition of his great work,” Poser wrote. “We remain concerned that the Lace Up Plan is in knots.”

Poser added that he believes that the results over the past two years and the “underwhelming” guidance will likely lead to a C-suite change. “Based on our checks, Bracken is regarded as an improvement from Dillon, but would be the first choice of few,” Poser wrote.

But not everyone is convinced that this leadership change scenario will play out at Foot Locker. Matt Powell, advisor at Spurwink River, told FN that Bracken’s promotion will only help the retailer’s current plans.

“I think Mary Dillon had a lot on her plate and is sharing some of that with Frank,” Powell, who is also a senior advisor at BCE Consulting, said. “Bracken will now take on a broader role.”

Bracken, who joined Foot Locker in 2010, has held several senior leadership roles of increasing responsibility across the company. During his tenure, he has led the expansion and elevation of Foot Locker, Inc.’s core banners such as Kids Foot Locker, Lady Foot Locker, Champs and most recently WSS.

The company noted that during Bracken’s tenure, he has led the globalization of the Foot Locker brand with unified global standards, and the revitalization and diversification of its brand partnerships. The company also credited Bracken with spearheading its omnichannel strategy – advancing digital capabilities, modernizing stores, and transforming the customer experience through a consumer-first approach.

Bracken’s promotion comes as Foot Locker said earlier this month that it delivered fourth quarter results above its previously revised expectations, as the company noted that investments and execution drove positive comparable sales and “meaningful” gross margin improvement compared to the prior year.

Total sales in the fourth quarter of 2024 were $2.24 billion, down 5.8 percent from $2.38 billion the same time in 2023. Net income from continuing operations was $55 million, as compared with net loss of $389 million in the prior-year period.

For the full fiscal year of 2024, Foot Locker said total revenue was $7.99 billion, down from $8.17 billion in fiscal 2023. Net income from continuing operations in the year was 18 million, up from a $330 million loss last year.

Looking ahead, the company expects sales for fiscal 2025 to range between a 1 percent decrease and a 0.5 percent gain, with comparable sales to increase between 1 percent and 2.5 percent.