Foot Locker Trips Up Despite Earnings Beat
Foot Locker Inc. (NYSE: FL) released its fiscal second-quarter financial results before the markets opened on Friday. The company posted $0.75 in earnings per share (EPS) and $1.78 billion in revenue, which compares with consensus estimates of $0.70 in EPS on revenue of $1.76 billion. In the same period of last year, the retailer said it had EPS of $0.62 and $1.7 billion in revenue.
During the most recent quarter, total sales increased 4.8%, while comparable sales only increased by 0.5%.
The company opened 13 new stores, remodeled or relocated 33 stores, and closed 21 stores in the second quarter, bringing its total footprint up to 3,276 stores.
Foot Locker did not offer any guidance for the fiscal third quarter. However, the consensus estimates call for $0.98 in EPS and $1.86 billion in revenue for the quarter.
On the books, Foot Locker’s cash and cash equivalents totaled $950 million at the end of the quarter, down from $1.04 billion in the same period of last year.
Richard Johnson, board chair and chief executive, commented:
Our performance reflects the work we are doing on several fronts to position the Company to succeed in a rapidly evolving retail environment. We remain optimistic that our improving product flow and depth in premium styles positions us to deliver stronger comparable sales growth in the second half of 2018.
Shares of Foot Locker were last seen down about 13% at $46.35, with a consensus analyst price target of $58.00 and a 52-week trading range of $28.42 to $59.40.