Why Foot Locker (FL) Shares Are Gaining Today - Foot Locker (NYSE:FL)

Specialty athletic retailer Foot Locker Inc FL reported a third-quarter FY22 sales decline of 0.73% year-on-year to $2.17 billion, beating the consensus of $2.09 billion.
Adjusted EPS of $1.27 beat the analyst consensus of $1.11.
Comparable store sales increased 0.8% versus last year.
The gross margin contracted 270 basis points, driven mainly by higher markdowns on increased promotional activity across the industry, and modest supply chain cost pressure.
Selling, general and administrative expenses rose 1.9% Y/Y to $467 million.
The operating margin was 7.2%, and operating income for the quarter declined 19.9% to $157 million.
The company held $351 million in cash and equivalents as of October 29, 2022.
CFO Andrew Page, said, "Following better-than-expected results for the third quarter and strong momentum coming out of the quarter, we are increasing our outlook for the fourth quarter and the full year. While the macroeconomic environment remains uncertain, our demand trends, and inventory position in high-quality product gives us confidence we can achieve our new range, while also remaining flexible to manage through ongoing volatility."
Outlook: Foot Locker updated its FY22 sales outlook to decline 4% - 5% (previous outlook decline 6% – 7%).
It raised Adjusted FY22 EPS from $4.25 - $4.45 to $4.42 - $4.50, versus the consensus of $4.25.
It sees Q4 sales to decline 8% - 10% and Adjusted EPS of $0.45- $0.53 versus an estimate of $0.43.
Price Action: FL shares are trading higher by 14.42% at $37.76 in premarket on the last check Friday.
Photo Via Company

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Foot Locker Pops On Q3 Earnings Beat, Raised FY22 Outlook