Foot Locker, Inc. (FL) posted third-quarter fiscal 2024 results, with both bottom and top lines lagging the Zacks Consensus Estimate. The company’s revenues decreased and earnings increased from the year-ago quarter. The company saw positive comparable sales trends and gross margin expansion, but third-quarter performance fell short due to softened consumer spending after the Back-to-School period and a more promotional environment. Progress continued with the Lace Up Plan and partnerships, including the 'H ...

Foot Locker shares fell on Wednesday after the retailer severely missed Wall Street's quarterly earnings estimates and cut its full-year sales and earnings forecast.  The retailer's stock fell by as much as 16% during morning trading as the company reported that it incurred a loss of $33 million, or 34 cents per share, for the three-month period ending on Nov. 2. That's down significantly from the $28 million it reported in the same period a year ago. Total sales for the quarter slipped 1.4% to $1.96 billio ...

Foot Locker, Inc. (NYSE: FL ) operates 2450 footwear retail stores across 26 countries under the Foot Locker, Champs Sports, WSS, and atmos brands. In addition, the company has 214 licensed stores across the Middle East and Asia with the brands.I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understand ...

Financial Data and Key Metrics Changes - In Q3 2024, total sales decreased by 1.4%, while comparable sales increased by 2.4%, consistent with Q2 results but below expectations [64][65] - Gross margin expanded by 230 basis points year-over-year to 29.6%, driven by improved merchandise margins [66][67] - Non-GAAP earnings per share were $0.33, up from $0.30 last year but below the guidance of approximately $0.40 [12][64] Business Line Data and Key Metrics Changes - Foot Locker and Kids Foot Locker banners saw comparable sales increase of 2.8%, while Champs Sports and WSS banners returned to positive territory with increases of 2.8% and 1.8%, respectively [9][64] - The Apparel business faced challenges with comparable sales down in the low 20s, while Accessories comped up high-single digits [50][51] - Digital comparable sales increased by 3.6%, with digital penetration rising to 17.6% of total sales [38][53] Market Data and Key Metrics Changes - In North America, overall comparable sales were up 2.1%, with Foot Locker North America up 1.6% and Kids Foot Locker up 3.2% [54][55] - European comparable sales increased by 6.4%, while Asia-Pacific saw a decline of 7.3% [60][62] - The promotional environment was elevated, particularly in digital and apparel categories, impacting overall performance [61][64] Company Strategy and Development Direction - The company is committed to its Lace Up Plan, aiming for an EBIT margin target of 8.5% to 9% by 2028 [14][80] - Focus on expanding sneaker culture through partnerships with brands like Nike and Adidas, and enhancing store experiences with reimagined concepts [15][25] - The company plans to open 27 new stores while closing approximately 130, resulting in a projected 4% decrease in store count for 2024 [74][80] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending behavior, noting a pullback in discretionary spending ahead of holiday events [10][12] - The company anticipates continued elevated promotional activity through the holiday season, impacting margin recovery [14][78] - Despite challenges, management remains optimistic about ongoing positive comparable sales and gross margin expansion [40][80] Other Important Information - The company completed 167 store refreshes in Q3, with a goal of approximately 400 for the year [28] - A $25 million non-cash impairment charge was taken against the atmos tradename, reflecting moderated growth expectations [71][73] - The loyalty program accounted for 27% of sales in Q3, up 4 points from the previous year [35] Q&A Session Summary Question: Can you speak to the balance between sales and margin in the quarter? - Management acknowledged progress on the Lace Up Plan but noted that performance fell below expectations due to macroeconomic factors and elevated promotions [82][86] Question: Did weather impact apparel sales? - Management indicated that while weather was not a significant factor, the apparel category lacked innovation, which affected sales [90][92] Question: What should be considered for fourth quarter guidance? - Management confirmed that the fourth quarter guidance aligns with recent trends, with expectations for improved launch calendars and continued promotional activity [99][103] Question: What is working for Champs and WSS? - Champs has seen positive results from its repositioning towards active athletes, while WSS is focusing on value propositions for lower-income consumers [108][112]

Foot Locker shares plunged 14.3% on Wednesday after the company reported earnings that missed estimates and slashed its yearly forecast on soft holiday demand – with the chief executive calling out Nike products in particular. Mary Dillon, the former Ulta Beauty boss who took over Foot Locker in 2022, blamed the earnings misses on soft demand for Nike sneakers and more promotions than expected across the industry.“There are definitely some brands that we’re seeing comp gains, and then, you know, we’re also ...

Foot Locker (FL) reported $1.96 billion in revenue for the quarter ended October 2024, representing a year-over-year decline of 1.4%. EPS of $0.33 for the same period compares to $0.30 a year ago.The reported revenue represents a surprise of -2.00% over the Zacks Consensus Estimate of $2 billion. With the consensus EPS estimate being $0.39, the EPS surprise was -15.38%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Foot Locker (FL) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.38%. A quarter ago, it was expected that this shoe store would post a loss of $0.08 per share when it actually produced a loss of $0.05, delivering a surprise of 37.50%.Over the last four quarters, the company has su ...

Exhibit 99.1 | --- | --- | --- | |-------|-----------|-----------------------------------------------------------------------| | | | | | | Contacts: | Kate Fitzsimons Investor Relations ir@footlocker.com | | | | | | | | Dana Yacyk Corporate Communications mediarelations@footlocker.com | FOOT LOCKER, INC. REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS; UPDATES 2024 OUTLOOK ● Total Sales Down 1.4% Year-over-Year and Comparable Sales Up 2.4% ● Gross Margin Expansion of 230 Basis Points Year-over-Year ● Loss of $ ...

Foot Locker slashed its full-year guidance on Wednesday after reporting a rough set of quarterly results. The sneaker giant fell short of Wall Street's expectations on the top and bottom lines and blamed the miss on soft consumer demand and elevated promotions across the marketplace. Foot Locker shares dropped 7% in premarket trading after it posted the results.Here's how Foot Locker did in its third fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:Earnin ...

Foot Locker is reportedly expanding the “Home Court” basketball sections it launched with Nike.The expansion is part of an effort by the sports apparel retailer and the sneaker giant to fix their damaged relationship, Bloomberg News reported Tuesday (Dec. 3).According to the report, Foot Locker plans to launch the new sections — which feature digital wallets where customers can test a sneaker’s performance with vertical jumps — in 100 stores around the world by 2026.“Basketball culture is a really key part ...