The album was recorded following the tour in support of their previous album, Nursery Cryme (1971), which saw them gain popularity, including a well-received slot at the Lincoln Great Western Festival. The album was written over the summer of 1972 and combined songs that had already been performed live with new material worked out in jam sessions. Recording began in August with John Anthony, but sessions were prone to tension and disagreements. After a short Italian tour, sessions resumed with Dave Hitchcock taking over production duties. The cover was the final Genesis work to be designed by Paul Whitehead, featuring a fox wearing a red dress. Frontman Peter Gabriel wore the dress and a fox's head on stage for the following tour, which gathered press attention and greatly improved the group's profile.
Foxtrot was the first Genesis album to chart in the UK, reaching No.?12, and received largely positive reviews. A non-album single "Happy The Man" was released at the same time. The album has continued to attract critical praise and was reissued with a new stereo and 5.1 surround sound mix as part of their 2008 Genesis 1970–1975 box set.
By the end of 1971, Genesis consisted of frontman and singer Peter Gabriel, keyboardist Tony Banks, bassist and guitarist Mike Rutherford, guitarist Steve Hackett and drummer Phil Collins. They had played around 400 gigs in the UK, but had yet to achieve commercial success. However, they had begun to become popular abroad; their 1970 album Trespass had reached No.?1 in Belgium, while 1971's Nursery Cryme had reached No.?4 in Italy. The Italian leg of the tour in April saw Genesis play to large and enthusiastic crowds, which gave the band new ideas about what audiences could be expected from a successful touring band.
The tour concluded in May that saw Genesis perform a set at the Great Western Festival in Lincoln. Gabriel appeared wearing a jewelled Egyptian collar, black eye-make up, and had shaved the front of his head, which drew attention from the press. Upon returning home the group dedicated time to write and rehearse new material for a new studio album. Hackett considered leaving the band after feeling "fairly shattered" from the lengthy tour, but his band mates persuaded him to stay and reassured they had liked his playing.