Free Research Report as Foot Locker’s Sales Rose 1.2%; Non-GAAP EPS Advanced 7%

LONDON, UK / ACCESSWIRE / June 26, 2018 / If you want access to our free earnings report on Foot Locker, Inc. (NYSE: FL), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FL. Foot Locker reported its first quarter fiscal 2019 operating and financial results on May 25, 2018. The shoe store outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Foot Locker most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=FL

Earnings Highlights and Summary

For the first quarter fiscal 2018, Foot Locker’s total sales increased 1.2% to $2.03 billion compared to sales of $2.00 billion for Q1 2017. Excluding the effect of foreign exchange rate fluctuations, the Company’s total sales for the reported quarter fell 1.5%. The Company’s reported numbers beat analysts’ estimates of $1.97 billion.

During Q1 2018, Foot Locker’s comparable-store sales fell 2.8%.

For Q1 2018, Foot Locker’s gross margin rate decreased to 32.9% from 34% in Q1 2017. The lower rate reflected a 60-basis point (bps) decline in the Company’s merchandise margin rates and was 50 bps of deleverage of Foot Locker’s occupancy and buyer’s compensation.

The Company’s reported quarter selling, general, and administrative (SG&A) expense rate increased to 19% in the reported quarter versus 18.5% in the year earlier same quarter, with higher forex rates contributing 20 bps of the increase. The further 30 bps of deleverage was attributable to the significant investments the Company is making into its digital operations as well as wage pressures and legal settlement costs.

Foot Locker’s net income was $165 million, or $1.38 per share, for Q1 2017 compared to net income of $180 million, or $1.36 per share, in Q1 2017. The Company’s reported quarter results included an incremental $12 million charge related to Foot Locker’s pension litigation. Excluding this charge, which reduced the Company’s after-tax earnings by $0.07 per share, Foot Locker’s non-GAAP earnings were $1.45 per share, reflecting a 7% increase compared to the year ago same period, and came in ahead of Wall Street’s estimates of $1.25 per share.

Financial Position

Foot Locker’s merchandise inventories were $1.21 billion as at May 05, 2018, 5.4% lower on a y-o-y basis.

As of May 05, 2018, Foot Locker’s cash totaled $1.03 billion, while the debt on its balance sheet was $125 million.The Company spent $112 million to repurchase 2.6 million shares during the reported quarter and paid a quarterly dividend of $0.345 per share, spending $41 million.

Store Base Update

During Q1 2018, Foot Locker opened 11 new stores, remodeled or relocated 43 stores, and closed 37 stores.As of May 05, 2018, the Company operated 3,284 stores in 24 countries in North America, Europe, Australia, and New Zealand.In addition, 105 franchised Foot Locker stores were operating in the Middle-East as well as 11 franchised Runners Point stores in Germany.

Outlook

For the second quarter 2018, Foot Locker is anticipating comparable sales to be flat to up slightly, and the Company is expecting low single-digit comparable sales increase in Q3 2018 and Q4 2018, strengthening within that low single-digit range as the year progresses. For the full year 2018, Foot Locker is estimating comparable sales to be flat to low single-digit growth.

For the upcoming quarter, Foot Locker is expecting gross margin to improve by approximately 20 to 50 bps. The Company is expecting Q2 2018 SG&A expense rate to increase as a percent of sales by 110 to 140 bps, which reflects the increased digital investments.

For the full year 2018, Foot Lockers is forecasting double-digit earnings growth over the Company’s FY17 earnings of $3.99 per share, on a non-GAAP 52-week basis. Gross margin, also on a non-GAAP 52-week basis, is now likely to improve 10 to 30 bps.

Stock Performance Snapshot

June 25, 2018 – At Monday’s closing bell, Foot Locker’s stock declined 2.58%, ending the trading session at $53.17.

Volume traded for the day: 2.32 million shares.

Stock performance in the last month – up 14.62%; previous three-month period – up 17.48%; past twelve-month period – up 10.70%; and year-to-date – up 13.42%

After yesterday’s close, Foot Locker’s market cap was at $6.46 billion.

Price to Earnings (P/E) ratio was at 17.75.

The stock has a dividend yield of 2.60%.

The stock is part of the Consumer Goods sector, categorized under the Textile – Apparel Footwear & Accessories industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

SOURCE: Active-Investors

ReleaseID: 503707