FL - Foot Locker stock pops 15% on Q1 earnings

2024-05-30 07:45:21 ET

Foot Locker Inc (NYSE: FL) is up 15% in premarket on Thursday after reporting better-than-expected earnings for its fiscal Q1.

Foot Locker stock gains on reaffirmed outlook

Investors are cheering also because the management reiterated its guidance signalling the turnaround is finally starting to yield results.

now forecasts its sales to fall between down 1.0% to up 1.0% this year. Analysts, in comparison, were at a 0.6% decline. Mary Dillon – the chief executive of Foot Locker told CNBC today:

The reason I feel confident, we’re launching an enhanced FLX rewards programme, so we have a lot of opportunity with rewards.

The footwear firm forecasts up to $1.70 of adjusted per-share earnings in its fiscal 2025 versus analysts at $1.57. Foot Locker stock is still down more than 25% versus its year-to-date high.

Notable figures in Foot Locker Q1 earnings report

• Earned $8.0 million versus the year-ago $36 million
• Per-share earnings also declined from 38 cents to 9 cents
• Adjusted EPS printed at 22 cents as per the earnings report
• Sales inched down 3.0% year-over-year to $1.88 billion
• Consensus was 12 cents a share on $1.88 billion in revenue

Foot Locker ended its first quarter with inventory down 5.6% versus a year ago. CEO Dillon also said in an interview with CNBC on Thursday:

We’re launching a revamped mobile app to drive customer engagement and commerce and we see growth opportunities … with all our brand partners, including returning to growth with Nike in holiday quarter.

Wall Street currently has a consensus “hold” rating on Foot Locker stock.

This is a developing story. Check back in a few minutes for more updates!

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