Foot Locker Posts Mixed Q1 Earnings; Eyes Upper End Of FY22 Revenue, EPS Guidance - Foot Locker (NYSE:FL)

Foot Locker Inc FL reported first-quarter FY22 sales growth of 1% year-on-year to $2.17 billion, missing the consensus of $2.20 billion.
Comparable-store sales decreased by 1.9%, with apparel significantly outpacing footwear.
Adjusted EPS of $1.60 beat the analyst consensus of $1.55.
Gross margin declined by 80 basis points, driven by higher supply chain costs and slightly higher markdowns.
Selling, general and administrative expenses rose 10.8% Y/Y to $463 million. SG&A deleveraged by 190 basis points, driven by labor costs and technology spending.
The operating margin was 10%, and operating income for the quarter fell 23% to $217 million.
The company held $551 million in cash and equivalents as of April 30, 2022.
Footlocker's merchandise inventories increased 37% Y/Y to $1.4 billion as of April 30, 2022.
Outlook: Foot Locker expects FY22 comparable sales in the upper end of down 8% - 10%. Sales change in the upper end of down 4% to 6%.
It sees an FY22 gross margin of 30.6% - 30.8%. Non-GAAP EPS to be at the upper end of $4.25-$4.60 (consensus $4.41).
CFO Andrew Page said, "Following our solid results from the first quarter, our strong inventory position going into the remainder of the year, and our strengthening vendor relationships, based on our current visibility, we now expect to achieve the upper end of our revenue and earnings guidance for the full year."
Price Action: FL shares are trading higher by 3.50% at $31.36 on the last check Friday.
Photo Via Wikimedia Commons

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