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.
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 financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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