How Foot Locker Is Kicking It in Q3
Foot Locker Inc. (NYSE: FL) released its fiscal third-quarter financial results before the markets opened on Friday. The company said that it had $1.13 in earnings per share (EPS) and $1.93 billion in revenue, while the consensus estimates had called for $1.07 in EPS on revenue of $1.94 billion. In the same period of last year, the shoe retailer said it had EPS of $0.95 and $1.86 billion in revenue.
Total sales for the firm increased by 3.9% in the quarter, while comparable store sales increased 5.7%. Excluding the effect of foreign exchange rate fluctuations, total sales for the fourth quarter increased 5.1%.
These results included a $4 million gain in connection with the acquisition of a Canadian distribution center lease and related assets, as well as a $1 million charge recorded in connection with the company’s pension matter.
During the most recent quarter, the company opened 11 new stores, remodeled or relocated 34 stores and closed 25 stores. As of November 2, 2019, the company operated 3,160 stores.
Foot Locker did not mention any guidance in its report. However, the consensus estimates call for $1.66 in EPS and $2.31 billion in revenue for the fiscal fourth quarter.
Richard Johnson, board chair and chief executive, commented:
We are pleased with our performance in the quarter, which reflects the success of our strategic focus on building even deeper connections with our customers and further strengthening relationships with our vendors. Across the Company, we are making great strides in implementing our four strategic imperatives, which are designed to ensure we are best positioned to compete in the retail marketplace by inspiring and empowering youth culture while also strengthening our bottom line and driving value for our shareholders.
Shares of Foot Locker closed Thursday at $41.46, in a 52-week range of $33.12 to $68.00. The consensus price target is $47.26. Following the announcement, the stock was up about 4% at $43.01 in early trading indications Friday.