Foot Locker Lifts Outlook After Better-Than-Expected Third Quarter
Foot Locker Inc.
FL 9.21%
raised its outlook for the year after posting better-than-expected third-quarter results, with sales at existing stores edging higher.
The company’s shares were up nearly 11% to $36.57 in recent trading. For the year, they are down 36.5%.
The New York City-based sneaker and athletic-wear retailer said same-store sales, which strip out effects of store openings and closings, were up eight-tenths of a percentage point from record levels seen last year.
Overall sales slipped slightly to $2.17 billion due to the stronger dollar. Excluding the impact of currencies, Foot Locker said sales would have been up 3.3%. Analysts polled by FactSet expected sales of $2.09 billion.
For the quarter ended Oct. 29, Foot Locker posted a profit of $96 million, or $1.01 a share, down from $158 million, or $1.52 a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were $1.27 a share. Analysts polled by FactSet had been expecting $1.11 a share.
Gross margin slipped, as the chain stepped up promotional activity and faced what it called modest supply-chain cost pressure.
Heartened by its third-quarter performance, Foot Locker lifted its outlook for the year. It now expects annual sales to decline 4% to 5%, compared with its prior forecast for a 6% to 7% drop. Adjusted earnings are projected to reach $4.42 to $4.50 a share, an 11-cent jump from the midpoint of its previous guidance.
Foot Locker’s results come amid a mixed week of earnings from retailers ahead of the crucial holiday shopping season.
Macy’s Inc.
and
Kohl’s Corp.
reported a drop in sales for their latest quarters as shoppers delayed their holiday purchases.
Target Corp.
said sales slowed, and it cut its outlook for the fourth quarter.
Meanwhile,
Walmart Inc.
attracted more shoppers in its latest quarter, as its reputation for low prices attracted consumers battered by inflation.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Foot Locker Inc.
FL 9.21%
raised its outlook for the year after posting better-than-expected third-quarter results, with sales at existing stores edging higher.
The company’s shares were up nearly 11% to $36.57 in recent trading. For the year, they are down 36.5%.
The New York City-based sneaker and athletic-wear retailer said same-store sales, which strip out effects of store openings and closings, were up eight-tenths of a percentage point from record levels seen last year.
Overall sales slipped slightly to $2.17 billion due to the stronger dollar. Excluding the impact of currencies, Foot Locker said sales would have been up 3.3%. Analysts polled by FactSet expected sales of $2.09 billion.
For the quarter ended Oct. 29, Foot Locker posted a profit of $96 million, or $1.01 a share, down from $158 million, or $1.52 a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were $1.27 a share. Analysts polled by FactSet had been expecting $1.11 a share.
Gross margin slipped, as the chain stepped up promotional activity and faced what it called modest supply-chain cost pressure.
Heartened by its third-quarter performance, Foot Locker lifted its outlook for the year. It now expects annual sales to decline 4% to 5%, compared with its prior forecast for a 6% to 7% drop. Adjusted earnings are projected to reach $4.42 to $4.50 a share, an 11-cent jump from the midpoint of its previous guidance.
Foot Locker’s results come amid a mixed week of earnings from retailers ahead of the crucial holiday shopping season.
Macy’s Inc.
and
Kohl’s Corp.
reported a drop in sales for their latest quarters as shoppers delayed their holiday purchases.
Target Corp.
said sales slowed, and it cut its outlook for the fourth quarter.
Meanwhile,
Walmart Inc.
attracted more shoppers in its latest quarter, as its reputation for low prices attracted consumers battered by inflation.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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