Foot Locker Inc (NYSE: FL) popped 20% this morning after reporting a surprise beat on both top and bottom lines in its third financial quarter.
Foot Locker stock up despite lowered earnings outlook
The sportswear retailer now forecasts sales to drop by up to 8.5% this year versus up to a 9.0% decline it had guided for earlier.Still, Foot Locker said its per-share earnings are expected to fall between $1.30 and $1.40 on an adjusted basis – down from up to $1.50 a share previously. Mary Dillon – its Chief Executive said in a press release today:
We look forward to rounding out our reset year and building on our progress in 2024 and beyond. We are on the right path to delivering longer-term shareholder value.
On the earnings call, she added that the turnaround initiatives were progressing well. Earlier this month, Foot Locker announced a new marketing deal with the NBA.
Introducing the Foot Locker & NBA Partnership.
Stay tuned for more! pic.twitter.com/lW6HFsBsDb
— Foot Locker (@footlocker) November 16, 2023
What Foot Locker is seeing in terms of consumer trends
Foot Locker saw robust sales this year over the Thanksgiving weekend, as per its earnings report.Shoppers, it added, were comfortable paying full price as long as the product is new and trendy. According to CEO Mary Dillon:
While our customers remain discerning with their discretionary dollars and we expect that will continue through the season, we’re also seeing them respond to newness at key moments.
Digital sales were up 0.4% in the recently concluded quarter excluding Eastbay. Foot Locker stock is still down about 40% versus its year-to-date high.
Notable figures in Foot Locker Q3 earnings release
An 8.0% hit to same-store sales in Q3 due to consumer softness was less than 9.7% that experts had forecast.More By This Author:Harbour Energy Share Price Has Collapsed: Buy The Dip Or Sell The Rip?
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