JHVEPhotoFoot Locker's (NYSE:FL) Q2 2024 results were not bad, but the market didn't like them, and the stock tanked 10% after the release. The company posted comparable and absolute growth across its main banner and in North America and EMEA. Thanks to lower clearance, margins are improving both at the gross and operating levels, albeit I am concerned about the deleveraging in SG&A. For a retailer, posting positive comparables should be good news because of leverage. Despite this, the stock tanked afte ...

In a pivotal moment for Foot Locker, the company’s second-quarter results point to the early success of its ambitious Lace Up Plan, which comprises initiatives to enhance its digital business, store experience, loyalty programs and brand building.With a 2.6% increase in comparable sales, surpassing initial projections and the company’s first rise in six quarters, Foot Locker’s performance is progressing as it approaches the second half of the year with renewed confidence. Foot Locker President and CEO Mary ...

Foot Locker is relocating its headquarters to Florida from New York.  The footwear retailer said Wednesday the city of St. Petersburg will become its new corporate headquarters come late 2025. Foot Locker said it was seeking to "further build on the Company’s meaningful presence in St. Petersburg and to enable increased collaboration among teams across banners and functions, while also reducing costs." The retailer already has a "very meaningful commercial and executive team presence" in St. Petersburg, acc ...

Foot Locker, Inc. FL shares are diving today after it released second-quarter results.The company reported a second-quarter adjusted EPS loss of 5 cents, beating the analyst consensus estimate of a 7-cent loss and sales of $1.896 billion, beating the street view of $1.888 billion.The company reiterated fiscal 2024 sales change of (1%)-1%, or $8.072 billion to $8.236 billion vs. the consensus of $8.130 billion and adjusted EPS guidance of $1.50-$1.70 versus the $1.54 consensus.J.P.Morgan analyst Matthew R. B ...

Foot Locker delivered some positive surprises with its Q2 report, but the company also had some bad news for investors.Foot Locker (FL -10.61%) stock is falling in Wednesday's trading. The company's share price was down 12.3% as of 12:30 p.m. ET, according to data from S&P Global Market Intelligence.Foot Locker published second-quarter results before the market opened this morning and actually delivered results that beat Wall Street's expectations on most key fronts. But management paired the release with s ...

Financial Data and Key Metrics Changes - Total sales increased by 1.9%, with comparable sales (comps) up 2.6%, slightly ahead of prior guidance of flat to slightly positive [46][51] - Gross margin expanded by 50 basis points to 27.6%, with merchandise margins down 20 basis points but occupancy leverage contributing positively [46][47] - Non-GAAP earnings per share was a loss of $0.05, including a $0.09 impact from a non-recurring charge related to the FLX program [9][49] Business Line Data and Key Metrics Changes - Global Foot Locker and Kids Foot Locker banners led comps growth at 5.2%, while Champs Sports saw a comp decline of 3.9%, showing improvement from the previous quarter [8][39] - The apparel business faced challenges with comps down mid-teens, while accessories comped up mid-single digits [35][37] - Digital penetration increased to 15.9%, up 40 basis points year-over-year, with global digital comps up nearly 4% [25][37] Market Data and Key Metrics Changes - North America comps were up 1.7%, driven by Foot Locker North America at 5.9% [38] - Europe saw strong comps growth of 7.6%, while Asia-Pacific comps were down 4.5%, with Foot Locker banner down 2.2% [43][44] - WSS comps declined by 6.2%, impacted by inflationary pressures affecting discretionary spending [41] Company Strategy and Development Direction - The company is focused on its Lace Up Plan, which aims to simplify and optimize operations, including winding down underperforming banners and transitioning to a licensed model in certain regions [10][11] - Plans to relocate corporate headquarters to St. Petersburg, Florida, and open new stores in India, indicating a strategic shift towards higher growth markets [13][12] - The company aims for an EBIT margin target of 8.5% to 9% by 2028, with ongoing investments in technology and brand building [10][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive sales and comp growth, with strong momentum heading into the back-to-school season [27][51] - The company anticipates continued gross margin expansion and is reaffirming its full-year non-GAAP EPS guidance of $1.50 to $1.70 [51][52] - Management acknowledged challenges in the consumer environment, particularly for lower-income households, but noted positive trends in customer engagement and loyalty [60][62] Other Important Information - The company completed 67 store refreshes in the second quarter, with plans to elevate approximately two-thirds of its global stores to the Reimagined brand standard by the end of 2025 [21][22] - The FLX rewards program saw 24% of sales through loyalty, up 200 basis points year-over-year, indicating strong customer engagement [24] Q&A Session Summary Question: What is driving the acceleration in comps while pulling back on promotions? - Management noted broad-based improvement across income cohorts and regions, with controlled inventories and better execution meeting customer needs [58][59] Question: Can you elaborate on the decisions regarding international operations? - Management emphasized simplification and optimization, focusing on markets with better growth potential and profitability, leading to the closure of certain operations [66][67] Question: How are gross margins tracking in North America? - Management indicated that while there are challenges in international and WSS, North American margins are progressing as planned, with expectations for meaningful acceleration in Q3 and Q4 [69][70]

Key TakeawaysFoot Locker posted sales growth of 1.9%, narrowly beating expectations.The company announced store closures in Asia and Europe.The company's 2024 guidance, including flat revenue at the midpoint, remained unchanged. Foot Locker (FL) shares took a dive Wednesday after the company’s second-quarter results underwhelmed investors. The sneaker retailer said revenue grew 1.9% year-over-year to $1.9 billion, just above the analyst consensus, per Visible Alpha. It posted a loss of 13 cents per share, ...

FOOT LOCKER, INC. 5ECOND QUARTER 2024 EARNINGS RESULTS AUGUST 28, 2024 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This investor presentation includes "toruard-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "extimates," "intends," "intends," "int "seeks," "continues," "feels," "forecasts," ...

Foot Locker, Inc. (FL) posted second-quarter fiscal 2024 results, with both the bottom and top lines surpassing the Zacks Consensus Estimate. Also, revenues were above while earnings were below the year-ago quarter's level. The company lowered its margin guidance due to heightened promotional pressure.However, in the second quarter, the Lace Up Plan demonstrated its effectiveness by driving a return to positive total and comparable sales growth, along with gross margin expansion. Strong top-line trends were ...

For the quarter ended July 2024, Foot Locker (FL) reported revenue of $1.9 billion, up 1.9% over the same period last year. EPS came in at -$0.05, compared to $0.04 in the year-ago quarter.The reported revenue represents a surprise of +0.89% over the Zacks Consensus Estimate of $1.88 billion. With the consensus EPS estimate being -$0.08, the EPS surprise was +37.50%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...