FL - Foot Locker: A 'Show Me' Story

2024-05-31 06:33:58 ET

Summary

• Foot Locker's shares spiked 15% despite falling short of revenue expectations in Q1 2024.
• Declining comparable store sales and store count are major concerns for the company.
• Management's initiatives, including off-mall locations and cost-cutting measures, provide some hope for the future.

May 30th ended up being a really great day for shareholders of footwear and apparel retailer Foot Locker ( FL ). Shares of the company spiked, closing up about 15%. This move higher came about in spite of the company reporting revenue that fell short of expectations for the first quarter of the 2024 fiscal year. However, adjusted earnings per share exceeded forecasts, while guidance for 2024 was reaffirmed. Even with this move higher, shares of the retailer are trading on the cheap. This is true both on an absolute basis and relative to many similar enterprises....

For further details see: