Foot Locker Kicks It Up a Notch With Q3 Earnings
Foot Locker reported better than expected quarterly results before the markets opened on Friday, but also declined to issue guidance.
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Foot Locker Inc. (NYSE: FL | FL Price Prediction) reported its most recent quarterly results before the markets opened on Friday. The shoe retailer said that it had $1.21 in earnings per share (EPS) and $2.11 billion in revenue. Analysts were expecting $0.62 in EPS and revenue of $1.94 billion. The third quarter of last year reportedly had EPS of $1.13 on $1.93 billion in revenue.
Management noted that the company delivered a strong top-line and bottom-line performance in the third quarter, underscoring the strength of its in-store and online product assortments.
Total third-quarter sales increased 9.0% year over year, and comparable store sales increased by 7.7%
Note that GAAP EPS came in at $2.52, still beating estimates. However, this calculation included a few charges, namely: a $190 million noncash gain related to a higher valuation for one of the company’s minority investments; $3 million in costs related to the shutdown of the Runners Point banner; and $1 million for costs incurred in connection with social unrest.
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Foot Locker’s cash and cash equivalents totaled $1.39 billion at the end of the quarter, up from $744 million in the same quarter of last year. Debt on the balance sheet came in at $131 million.
Foot Locker still declined to issue guidance, citing uncertainty regarding COVID-19. Analysts are calling for $1.20 in EPS and $2.24 billion in revenue for the fiscal fourth quarter.
Foot Locker traded down fractionally early Friday at $41.11, in a 52-week range of $17.46, with a 52-week range of $17.46 to $41.84. Analysts have a consensus price target of $38.67.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
