Shares of Foot Locker, Inc. (FL – Free Report) fell during pre-market trading hours, in spite of reporting positive earnings surprise for the second straight quarter. The stock is down more than 7% following the announcement of fourth-quarter fiscal 2017 results due to lower-than-expected top-line results and muted outlook.

We note that in the past three months, the stock has increased 0.3% compared with the industry’s decline of 1.7%.

This operator of athletic shoes and apparel retailer posted quarterly earnings of $1.26 per share that beat Zacks Consensus Estimate by a penny. However, the bottom line fell 8% year over year, following declines of 23% and 34% in the third and second quarter, respectively. Management highlighted that the 53rd week contributed 12 cents a share to earnings. Excluding this, earnings plunged 16.8% year over year.  

The New York-based retailer generated total sales of $2,210 million that fell short of the Zacks Consensus Estimate of $2,222 million, after surpassing the same in the preceding quarter. However, sales improved 4.6% year over year, after sliding 0.8% and 4.4% in the third and second quarter, respectively. Excluding the impact of foreign currency fluctuations, total sales grew 2%.

Comparable-store sales fell 3.7% during the quarter under review, following declines of 3.7% and 6% in the third and second quarter, respectively.

Gross margin contracted 230 basis points to 31.4% primarily due to intense promotional environment. SG&A expense rate increased 40 basis points to 19.1% during the quarter.

Foot Locker, Inc. Price, Consensus and EPS Surprise

Locker, Inc. Price, Consensus and EPS Surprise | Foot Locker, Inc. Quote

Store Update

During the quarter under review, Foot Locker opened 28 new outlets, remodeled or relocated 45 outlets, and shuttered 67 outlets. As of Feb 3, 2018, the company operated 3,310 outlets across 24 countries in North America, Australia, New Zealand and Europe. Apart from these, there are 98 franchised Foot Locker stores in the Middle East. Germany has 14 franchised Runners Point stores.

Print Friendly, PDF & Email

Related Posts