Earnings Review and Free Research Report: Foot Locker’s Results Missed Market Estimates

Research Desk Line-up: Vera Bradley Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 8, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Foot Locker, Inc. (NYSE: FL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FL, following the Company’s release of its second quarter fiscal 2017 financial results on August 18, 2017. The athletic footwear and apparel retailer reported a y-o-y decline in sales and earnings. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Textile – Apparel Footwear & Accessories industry. Pro-TD has currently selected Vera Bradley, Inc. (NASDAQ: VRA) for due-diligence and potential coverage as the Company announced on August 30, 2017, its financial results for Q2 FY18 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Vera Bradley when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FL; also brushing on VRA. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the second quarter ended July 29, 2017, Foot Locker’s total sales decreased 4.4% to $1.70 billion compared to sales of $1.78 billion for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, the Company’s total sales for the reported quarter decreased 4.3% on a y-o-y basis. The Company’s sales lagged behind analysts’ estimates of $1.80 billion. For Q2 2017, Foot Locker’s comparable-store sales dropped 6.0%. The Company expects comparable sales to be down 3% to 4% for the remainder of the year.

During Q2 2017, Foot Locker’s gross margin rate decreased to 29.6% of sales from 33.0% of sales in Q2 2016. The Company’s income from operations for the reported quarter was $122 million compared to $198 million in the prior year’s same quarter.

Foot Locker’s net income was $51 million, or $0.39 per share, for Q2 2017 compared to net income of $127 million, or $0.94 per share, in Q2 2016. The Company’s reported quarter results included a $50 million pre-tax litigation charge related to a recent appeals court decision in a lawsuit against the Company involving the conversion of its pension plan in 1996. Foot Locker had earlier recorded a $100 million pre-tax charge in Q3 2015 related to the same litigation. Excluding this charge, the Company’s non-GAAP earnings were $0.62 per share for Q2 2017. Foot Locker’s earnings fell short of Wall Street’s estimates of $0.90 per share.

Commenting on the results, Richard Johnson, Chairman and Chief Executive Officer (CEO) of Foot Locker stated:

“Sales of some recent top styles fell well short of our expectations and impacted this quarter’s results. At the same time, we were affected by the limited availability of innovative new products in the market.”

Financial Position

At July 29, 2017, Foot Locker’s merchandise inventories were $1.29 billion, 3.7% lower on a y-o-y basis. On a constant currency basis, the Company’s inventory decreased 4.9%. As of July 29, 2017, Foot Locker’s cash totaled $1.04 billion, while the debt on its balance sheet was $126 million. The Company spent $21 million to repurchase 350 thousand shares during the reported quarter and paid a quarterly dividend of $0.31 per share for $41 million.

On August 16, 2017, Foot Locker announced that its Board of Directors declared a quarterly cash dividend on the Company’s common stock of $0.31 per share, which will be payable on October 27, 2017, to shareholders of record on October 13, 2017.

Store Base Update

During Q2 2017, Foot Locker opened 24 new stores, remodeled or relocated 38 stores, and closed 19 stores. As of July 29, 2017, the Company operated 3,359 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 68 franchised Foot Locker stores were operating in the Middle-East, as well as 14 franchised Runners Point stores in Germany.

Stock Performance

On Thursday, September 07, 2017, Foot Locker’s stock closed the trading session at $36.16, slipping 1.47% from its previous closing price of $36.70. A total volume of 3.35 million shares were exchanged during the session. Shares of the Company have a PE ratio of 8.35 and have a dividend yield of 3.43%. The stock currently has a market cap of $4.75 billion.

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