Foot Locker crushes analysts’ expectations for the third quarter
Same-store sales jumped 7.7 percent, easily beating consensus forecast of 0.2 percent rise.

Foot Locker Inc. (FL) shares rose more than 3 percent in the pre-market trading Friday after the sportswear and footwear retailer announced strong financial results for the third quarter. 

The company reported earnings of $265 million, or $2.52 per share for the three-month period ended October 31, well above $125 million, or $1.16 per share in the comparable period last year. On an adjusted basis, profit rose to $1.21 per share, crushing consensus estimate of 63 cents per share. 

Revenue came in at $2.11 billion, up 9 percent from the same period last year, and above analysts’ average expectation of $1.95 billion. 

Speaking on the results, CEO Richard Johnson said "although the back-to-school selling season kicked in later than usual due to COVID-19-related delays, momentum built as the quarter progressed, and we were pleased with our customers' continued strong engagement across our family of brands. Our teams again executed well in a dynamic environment and did a tremendous job maintaining a seamless, safe, and exciting shopping experience for our customers."

Same-store sales jumped 7.7 percent, easily beating consensus forecast of 0.2 percent rise. Merchandise inventories were down 8.5 percent in the quarter versus last year. 

The company said that it repurchased more than 300 thousand shares of its common stock in the quarter for $10 million. 

Foot Locker (NYSE: FL) shares hit a new 52-week high of $42 this morning but declined more than 3 percent afterwards. The apparent reason behind the drop seems to be another wave of Covid-19 that might force the retailer to temporarily close its stores once again.

Earlier this year, FL shares plummeted sharply to around $18 per share in March after the pandemic started. However, the stock managed to recover its lost value in the subsequent months. Overall, FL share price has not gained any value on a year-to-date basis. 


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-20 10:15

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.

FL
Analyst Ratings
Target Price $42.96
# of Analysts 23
Last updated 2020-11-20


Burlington Stores hints at weak start to the fourth quarter, shares down
Same-store sales declined 11 percent in the quarter, less than a drop of 16.3 percent projected by analysts.
By Staff | 16 hours ago

Pandemic drives online revenue of Best Buy Co. to new highs in the third quarter
Comparable online sales in the U.S. skyrocketed more than 173 percent on a year-over-year basis.
By Staff | 17 hours ago
BBY

Dick's Sporting Goods crushes analysts’ expectations for third-quarter profit
On an adjusted basis, profit rose to $2.01, easily beating analysts’ average estimate of $1.08 per share.
By Staff | 18 hours ago
DKS

Abercrombie & Fitch shares turn red despite beating consensus expectation for Q3
On an adjusted basis, profit rose to 76 cents per share, while analysts on average were expecting the company to report a loss of 4 cents per share.
By Staff | 19 hours ago
ANF

Dollar Tree shares hit 52-week high on strong quarterly performance
Same-store sales jumped by 5.1 percent on a year-over-year basis, beating the analysts’ average forecast of 4.7 percent growth.
By Staff | 20 hours ago

Snap Inc. shares rally on the roll-out of a new feature
Snap is initially launching Spotlight in 11 countries including the United States and Canada, with a plan to add more in the coming time.
By Staff | 1 day ago