What's Going On With Foot Locker Shares Today?

Zinger Key Points
  • Foot Locker beats Q4 sales estimates but sees a decline in comparable store sales.
  • Foot Locker maintains long-term earnings outlook despite projecting a two-year delay in reaching targets.

Foot Locker, Inc. FL shares are trading lower in the premarket session on Thursday.

Shares of Foot Locker slumped nearly 15% in the past month, way lower than the broader S&P 500’s gain of over 2%.

Yesterday, the specialty athletic retailer reported fourth-quarter FY23 sales growth of 2% year-on-year to $2.38 billion, beating the analyst consensus estimate of $2.28 billion.

Comparable store sales decreased 0.7%. Adjusted EPS of $0.38 beat the analyst consensus of $0.32.

Mike Baughn, Executive Vice President and Chief Financial Officer, said, “We maintain conviction in the longer-term earnings potential that our Lace Up plan will generate and reiterate the 8.5-9% EBIT margin target communicated at our March 2023 Investor Day”. 

“Given our lower starting point exiting 2023, we expect a two-year delay in achieving that goal and now see reaching that target by 2028,” Baughn added.

Last month, Foot Locker announced The Clinic, a year-long program with Nike, Inc. NKE and Jordan Brand, specifically meant for basketball fans, sneaker enthusiasts, and local communities.

Foot Locker sees FY24 comparable sales growth of 1% to 3%. FL expects sales to be -1% to +1%, representing $8.072 billion-$8.236 billion (consensus $8.02 billion).

Foot Locker expects Adjusted FY24 EPS of $1.50-$1.70 versus the consensus of $1.93.

Also ReadThese Analysts Slash Their Forecasts On Foot Locker After Q4 Results

Price Action: FL shares are trading lower by 1.86% to $23.79 premarket on the last check Thursday. 

Photo via Wikimedia Commons

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