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 ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Foot Locker reported a 1.4% decrease in total sales year-over-year for the third quarter of 2024, but saw a 2.4% increase in comparable sales. The company achieved a significant 230 basis point expansion in gross margin and reduced inventory by 6.3%. Despite these gains, the company posted a GAAP loss of $0.34 per share, though Non-GAAP earnings were positive at $0.33 per share. Consequently, the full-year 2024 outlook for sales and Non-GAAP EPS has been updated Q3 2024 Key Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Total Sales | $1,958 million | -1.4% | | Comparable Sales | N/A | +2.4% | | Gross Margin | N/A | +230 bps | | GAAP EPS | -$0.34 | Down from $0.30 | | Non-GAAP EPS | $0.33 | Up from $0.30 | | Inventory | $1.7 billion | -6.3% | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Mary Dillon acknowledged that Q3 top and bottom-line results fell short of expectations due to softened consumer spending post-Back-to-School and a highly promotional environment. Despite this, she highlighted progress on the 'Lace Up Plan,' including the 'Home Court' experience with Nike and a new partnership with the Chicago Bulls. Due to a cautious view on consumer demand outside of key holiday periods, the company is lowering its full-year outlook but remains confident in its long-term strategy to achieve an 8.5-9% EBIT margin by 2028 - Q3 performance was below expectations, attributed to softer consumer spending and increased promotional activity after the Back-to-School season[3](index=3&type=chunk) - Strategic progress continues under the 'Lace Up Plan,' highlighted by the rollout of the 'Home Court' store concept with Nike and a new partnership with the Chicago Bulls[3](index=3&type=chunk) - The full-year sales and earnings outlook is being lowered due to a more cautious view on consumer demand, despite a positive sales acceleration during Thanksgiving week[3](index=3&type=chunk) [Third Quarter 2024 Financial Performance](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Performance) In Q3 2024, total sales declined 1.4% to $1,958 million, while comparable sales grew 2.4%. Gross margin improved by 230 basis points due to reduced markdowns, but SG&A expenses also rose by 210 basis points as a percentage of sales, driven by technology and brand investments. The company recorded a net loss of $33 million ($0.34 per share) on a GAAP basis, compared to a net income of $28 million in the prior year, primarily due to impairment charges. Non-GAAP net income was $31 million ($0.33 per share) [Sales and Comparable Sales](index=1&type=section&id=Sales%20and%20Comparable%20Sales) Total sales for Q3 2024 were $1,958 million, a 1.4% decrease from $1,986 million in Q3 2023. On a constant currency basis, sales decreased by 2.2%. However, comparable sales showed positive momentum, increasing by 2.4%, with notable growth from Foot Locker and Kids Foot Locker (+2.8%), Champs Sports (+2.8%), and WSS (+1.8%) Q3 2024 Sales Performance | Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | Total Sales | $1,958 M | $1,986 M | -1.4% | -2.2% | - Comparable sales increased by **2.4%**, driven by positive performance across key banners: Foot Locker and Kids Foot Locker (**+2.8%**), Champs Sports (**+2.8%**), and WSS (**+1.8%**)[5](index=5&type=chunk) [Profitability and Margins](index=2&type=section&id=Profitability%20and%20Margins) Gross margin expanded by 230 basis points year-over-year, primarily due to lower markdown levels, though performance was below expectations. Conversely, SG&A expenses as a percentage of sales increased by 210 basis points, reflecting investments in technology and brand-building, which were partially offset by cost optimization savings - Gross margin increased by **230 basis points** compared to the prior-year period, led by reduced markdowns[6](index=6&type=chunk) - SG&A as a percentage of sales rose by **210 basis points**, driven by investments in technology and branding[7](index=7&type=chunk) [Net Income and Earnings Per Share (EPS)](index=2&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share%20%28EPS%29) The company reported a Q3 net loss of $33 million, or $0.34 per share, a significant shift from the $28 million net income, or $0.30 per share, in the same period last year. On a Non-GAAP basis, which excludes items like impairment charges, net income was $31 million ($0.33 per share), slightly up from $28 million ($0.30 per share) in Q3 2023. Key non-GAAP exclusions included a $25 million impairment of the atmos tradename and a $35 million impairment of a minority investment Q3 2024 Net Income and EPS (GAAP vs. Non-GAAP) | Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | | :--- | :--- | :--- | | Net (Loss) Income (GAAP) | ($33 M) | $28 M | | Diluted (Loss) EPS (GAAP) | ($0.34) | $0.30 | | Net Income (Non-GAAP) | $31 M | $28 M | | Diluted EPS (Non-GAAP) | $0.33 | $0.30 | - Non-GAAP results exclude significant charges, including a **$25 million** impairment of the atmos tradename and a **$35 million** impairment on a minority investment[10](index=10&type=chunk) [Financial Position and Store Base](index=2&type=section&id=Financial%20Position%20and%20Store%20Base) As of November 2, 2024, Foot Locker maintained a solid balance sheet with $211 million in cash and $445 million in debt. Merchandise inventory was effectively managed, decreasing 6.3% year-over-year to $1.7 billion. The company continued to optimize its retail footprint, closing a net of 14 stores during the quarter to end with 2,450 stores globally, while also remodeling, relocating, or refreshing 187 locations Balance Sheet and Inventory Summary (as of Nov 2, 2024) | Metric | Value (in millions) | Change (YoY) | | :--- | :--- | :--- | | Cash and cash equivalents | $211 million | +12.8% | | Total debt | $445 million | +0.5% | | Merchandise inventories | $1.7 billion | -6.3% | - In Q3, the company opened **10 new stores** and closed **24**, ending the quarter with **2,450 stores** in **26 countries**[13](index=13&type=chunk) - The company continued its store refresh program, remodeling or relocating **20 stores** and updating **167 stores** to new design standards[13](index=13&type=chunk) [Updated 2024 Financial Outlook](index=3&type=section&id=Updated%202024%20Financial%20Outlook) Foot Locker has lowered its full-year 2024 guidance, reflecting a more cautious outlook on consumer spending and a promotional environment. The company now expects a total sales decline of 1.5% to 1.0% (previously -1.0% to +1.0%) and comparable sales growth of 1.0% to 1.5% (down from 1.0% to 3.0%). The gross margin forecast is reduced to 28.7%-28.8%, and the Non-GAAP EPS range has been significantly lowered to $1.20-$1.30 from the previous $1.50-$1.70 Full-Year 2024 Guidance Update | Metric | Prior Guidance | Updated Guidance | | :--- | :--- | :--- | | Sales Change (%) | -1.0% to +1.0% | -1.5% to -1.0% | | Comparable Sales Change (%) | +1.0% to +3.0% | +1.0% to +1.5% | | Gross Margin (%) | 29.5% to 29.7% | 28.7% to 28.8% | | EBIT Margin (%) | 2.8% to 3.2% | 2.3% to 2.5% | | Non-GAAP EPS (USD) | $1.50 to $1.70 | $1.20 to $1.30 | - The reduction in gross margin guidance is attributed to expected promotional pressure[15](index=15&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements provide a detailed view of Foot Locker's performance. The Statement of Operations shows a Q3 total revenue of $1,961 million and a net loss of $33 million. The Balance Sheet indicates total assets of $6,862 million and total liabilities of $3,994 million. The Statement of Cash Flows reveals net cash provided by operating activities of $98 million year-to-date. Detailed tables also break down sales by banner and track changes in store count and square footage [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter ending November 2, 2024, total revenue was $1,961 million, down from $1,989 million in the prior year. Higher SG&A and impairment charges led to an income from operations of $12 million, a sharp decrease from $47 million YoY. After accounting for other expenses and taxes, the company reported a net loss of $33 million, compared to a net income of $28 million in Q3 2023 Q3 2024 Statement of Operations Highlights (in millions) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenue | $1,961 | $1,989 | | Gross Profit (Revenue - Cost of Sales) | $583 | $546 | | Income from Operations | $12 | $47 | | Net (Loss) Income | $(33) | $28 | [Sales by Banner](index=7&type=section&id=Sales%20by%20Banner) In Q3 2024, the North America region generated $1,405 million in sales, a 3.7% decrease on a constant currency basis, though comparable sales grew 2.1%. The EMEA region performed strongly with sales of $445 million, representing a 6.1% increase in constant currency and 6.4% comparable sales growth. The Asia Pacific region saw sales decline by 11.8% in constant currency to $108 million Q3 2024 Sales Performance by Region (in millions) | Region | Sales | Constant Currency % Change | Comparable Sales % Change | | :--- | :--- | :--- | :--- | | North America | $1,405 | -3.7% | +2.1% | | EMEA | $445 | +6.1% | +6.4% | | Asia Pacific | $108 | -11.8% | -7.3% | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of November 2, 2024, Foot Locker's total assets were $6,862 million, down from $7,420 million a year prior. The decrease was driven by reductions in minority investments and other intangible assets. Total liabilities also decreased to $3,994 million from $4,215 million. Shareholders' equity stood at $2,868 million Balance Sheet Summary (in millions) | Account | Nov 2, 2024 | Oct 28, 2023 | | :--- | :--- | :--- | | Total Current Assets | $2,386 | $2,374 | | Total Assets | $6,862 | $7,420 | | Total Current Liabilities | $1,432 | $1,459 | | Total Liabilities | $3,994 | $4,215 | | Total Shareholders' Equity | $2,868 | $3,205 | [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the thirty-nine weeks ended November 2, 2024, net cash provided by operating activities was $98 million, a significant improvement from the $98 million used in the same period last year. Net cash used in investing activities was $185 million, primarily for capital expenditures. Financing activities used $6 million. The company ended the period with $242 million in cash, cash equivalents, and restricted cash Year-to-Date Cash Flow Summary (in millions) | Activity | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $98 | $(98) | | Net cash used in investing activities | $(185) | $(145) | | Net cash used in financing activities | $(6) | $(120) | [Store Count and Square Footage](index=10&type=section&id=Store%20Count%20and%20Square%20Footage) Year-to-date as of November 2, 2024, Foot Locker's total store count decreased from 2,523 to 2,450, a net reduction of 73 stores. The company opened 19 new stores while closing 92. The North America region saw the largest net decrease with 54 store closures. Total gross square footage decreased from approximately 13.1 million to 12.8 million - The company's total store count decreased by a net of **73 stores** year-to-date, ending the period with **2,450 stores**[38](index=38&type=chunk) - During the first three quarters of 2024, the company opened **19 stores** and closed **92** across its global operations[38](index=38&type=chunk) [Non-GAAP Financial Measures and Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliation) The company provides Non-GAAP financial measures to offer a clearer comparison of core business performance across periods by excluding items considered non-recurring or unusual. For Q3 2024, key adjustments to reconcile GAAP to Non-GAAP earnings included a $38 million pre-tax charge for impairment and other costs (including the atmos tradename impairment and reorganization costs) and a $35 million pre-tax impairment charge on a minority investment. These adjustments transformed a GAAP pre-tax loss of $25 million into a Non-GAAP pre-tax income of $48 million - Non-GAAP measures are used to exclude items not indicative of core business performance, such as gains/losses on minority investments and impairment charges, to assist investor comparison[22](index=22&type=chunk)[24](index=24&type=chunk) Q3 2024 GAAP to Non-GAAP Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | (Loss) income before income taxes (GAAP) | $(25) | | Impairment and other | $38 | | Other income / expense (minority investment) | $35 | | Adjusted income before income taxes (Non-GAAP) | $48 | - Major Q3 2024 non-GAAP adjustments included a **$25 million** impairment of the atmos tradename, **$7 million** in reorganization costs, and a **$35 million** impairment of a minority investment[30](index=30&type=chunk)

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 ...

In its upcoming report, Foot Locker (FL) is predicted by Wall Street analysts to post quarterly earnings of $0.39 per share, reflecting an increase of 30% compared to the same period last year. Revenues are forecasted to be $2.01 billion, representing a year-over-year increase of 1.1%.The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during ...

Foot Locker (FL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended October 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on December 4, 2024, might help the stock move higher if these key numbers are better than e ...

Core Viewpoint - Needham analyst Tom Nikic initiated coverage on Foot Locker, Inc. with a Buy rating and a price forecast of $27, indicating a positive outlook for earnings recovery in 2025 driven by various factors [1] Group 1: Earnings Recovery and Growth Drivers - Foot Locker is expected to benefit from a strengthened partnership with Nike, growth in non-Nike brands, recent SG&A investments, and recovery of merchandise margins [1][4] - The analyst anticipates trends to improve post-Thanksgiving, supported by a consumer survey showing strong holiday interest in sneakers [2] - Foot Locker is also expanding its offerings with brands like Hoka and On, and strengthening relationships with Adidas, New Balance, Crocs, and UGG [3] Group 2: Financial Projections - The company is projected to report FY24 revenues of $8.164 billion and earnings per share of $1.61 [5] - Foot Locker's EBIT margin was significantly lower last year compared to pre-COVID levels, with modest improvement expected in FY24 due to long-term growth investments [3][4] Group 3: Market Dynamics - Foot Locker faced challenges from Nike's decision to reduce high-demand product supply, but a shift to increase product allocations to Foot Locker starting in Q4 2024 is expected to drive positive sales growth [2] - Merchandise margins are still over 300 basis points below pre-COVID levels, indicating further opportunities for gross margin improvement [4]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, incl ...

Shares of Foot Locker Inc (FL, Financial) fell 3.80% in mid-day trading on Oct 2. The stock reached an intraday low of $24.10, before recovering slightly to $24.17, down from its previous close of $25.12. This places FL 32.12% below its 52-week high of $35.60 and 36.87% above its 52-week low of $17.66. Trading volume was 1,046,276 shares, 31.7% of the average daily volume of 3,302,479.Wall Street Analysts ForecastBased on the one-year price targets offered by 15 analysts, the average target price for Foot L ...

Foot Locker, Inc. (FL) is currently trading at a notable low price-to-earnings (P/E) multiple, which is below the Zacks Retail-Apparel and Shoes industry and the broader Retail-Wholesale sector’s averages. FL's forward 12-month P/S ratio is 0.29, lower than the industry's and the sector’s ratios of 1.14 and 1.44, respectively.This stock is undervalued than its industry peers, thereby offering compelling value to investors looking for exposure to the sector. FL's Value Score of A underscores its appeal as an ...