Free Research Report as Foot Locker Reported Better Than Expected Results

LONDON, UK / ACCESSWIRE / December 29, 2017 /Active-Investors.com has just released a free earnings report on Foot Locker, Inc. (NYSE: FL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FL. The Company posted its financial results on November 17, 2017, for the third quarter fiscal 2017. 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 three months ended October 28, 2017, Foot Locker’s revenue decreased 0.8%, or 2.3% on a constant currency basis, to $1.87 billion from $1.89 billion in Q3 FY16. During the reported quarter, the Company’s comparable store sales growth was negative 3.7%. The Company’s revenue surpassed analysts’ expectations of $1.83 billion.

As of October 28, 2017, the Company operated 3,349 stores compared to 3,363 stores on January 28, 2017. During Q3 FY17, the Company opened 12 new stores, remodeled or relocated 41 stores, and closed 22 stores.

During Q3 FY17, Foot Locker’s gross profit decreased 9.4% to $580 million from $640 million in the same period last year. For the reported quarter, the Company’s gross margin decreased 290 basis points to 31.0% of revenue from 33.9% of revenue in Q3 FY16. The decrease was due to a 190-basis point decrease in our merchandise margin, a 10-basis point increase in shipping expense and 90-basis points of deleverage on Company’s occupancy and buyers’ compensation expenses.

During Q3 FY17, Foot Locker’s operating income decreased 28.2% to $168 million from $234 million in the same period last year. For the reported quarter, the Company’s operating margin decreased 350 basis points to 8.9% of revenue from 12.4% of revenue in Q3 FY16.

During Q3 FY17, Foot Locker’s earnings before tax (EBT) decreased 31.3% to $156 million from $227 million in the same period last year. For the reported quarter, the Company’s EBT margin decreased 370 basis points to 8.3% of revenue from 12.0% of revenue in Q3 FY16.

For the reported quarter, Foot Locker’s net income decreased 35% to $102 million, from $157 million in Q3 FY16. During Q3 FY17, the Company’s diluted EPS decreased 30.8% to $0.81 from $1.17 in the same period last year. For the reported quarter, Foot Locker’s adjusted net income decreased 27.6% to $110 million from $152 million in Q3 FY16. During Q3 FY17, the Company’s adjusted diluted EPS decreased 23% to $0.87 from $1.13 in the same period last year. Adjusted diluted EPS surpassed analysts’ expectations of $0.80.

Balance Sheet

As on October 28, 2017, Foot Locker’s cash and cash equivalents increased 2.9% to $890 million from $865 million on October 29, 2016. For the reported quarter, the Company’s long-term debt and obligations under capital leases decreased 0.8% to $126 million from $127 million in Q3 FY16.

For the reported quarter, the Company’s merchandise inventories decreased 3.4% to $1.32 billion from $1.36 billion in Q3 FY16. For the reported quarter, the Company’s accounts payable increased 13% to $243 million from $215 million in Q3 FY16.

On November 15, 2017, the Company’s Board of Directors declared a quarterly cash dividend on its common stock of $0.31 per share, payable on February 02, 2018, to shareholders of record on January 19, 2018.

Outlook

For Q4 FY17, the Company expects comparable sales growth to be in the range of negative 2% to negative 4% and EPS growth to be in the range of negative 15% to negative 25%.

Stock Performance Snapshot

December 28, 2017 – At Thursday’s closing bell, Foot Locker’s stock fell 1.24%, ending the trading session at $47.09.

Volume traded for the day: 1.68 million shares.

Stock performance in the last month – up 16.42%; previous three-month period – up 35.08%

After yesterday’s close, Foot Locker’s market cap was at $5.79 billion.

Price to Earnings (P/E) ratio was at 11.86.

The stock has a dividend yield of 2.63%.

The stock is part of the Consumer Goods sector, categorized under the Textile – Apparel Footwear & Accessories industry. This sector was flat at the end of the session.

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