2024

when

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">In the third quarter of 2024, Foot Locker, Inc. (NYSE: FL) <a href="https://investors.footlocker-inc.com/news-releases/news-release-details/foot-locker-inc-reports-third-quarter-2024-financial-results" target="_blank" aria-label="reported (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">reported</a> a slight decline in total sales, which fell 1.4% year-over-year to $1.95 billion from $1,98 billion in the same period of the previous year. This dip in sales was more pronounced when adjusted for foreign exchange rate fluctuations, showing a decrease of 2.2%. Despite the overall drop in sales, the company achieved a 2.4% increase in comparable sales, driven by growth in its global Foot Locker and Kids Foot Locker stores, which saw comparable sales rise by 2.8% and 3.2%, respectively.</p> 
<p>Other banners like Champs Sports and WSS also contributed to this growth, with positive comparable sales of 2.8% and 1.8%. Foot Locker’s gross margin improved significantly, expanding by 230 basis points compared to the previous year, primarily due to a reduction in markdown levels. This improvement in gross margin was a positive outcome, although the performance did not fully meet expectations due to a more aggressive promotional environment.</p> 
<p>However, the company’s selling, general, and administrative expenses as a percentage of sales increased by 210 basis points, reflecting investments in technology and brand-building, partially offset by savings from cost optimization efforts. The quarter ended with a net loss of $33 million, a significant shift from the net income of $28 million recorded in the corresponding period last year.</p> 
<p>On a non-GAAP basis, which excludes certain charges, the net income for the quarter was $31 million, slightly higher than the previous year’s $28 million. The non-GAAP earnings per share stood at $0.33, compared to $0.30 in the prior year, indicating some resilience in the company’s core operations despite the challenges faced.</p> 
<h3 id="foot-locker-reports-slight-miss-in-the-third-quarter">Foot Locker Reports Slight Miss in the Third Quarter </h3> 
<p>Foot Locker’s third-quarter performance fell short of market expectations. Analysts had anticipated <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="dofollow" class="deco-link">earnings per share (EPS)</a> of $0.4181 and revenue of $2.02 billion. However, the company reported non-GAAP EPS of $0.33, missing the expected target. Similarly, actual revenue came in at $1.958 billion, below the forecasted figure. This underperformance can be attributed to several factors, including a softer consumer spending environment following the peak back-to-school period and heightened promotional activities.</p> 
<p>The company’s leadership acknowledged these challenges, with CEO Mary Dillon highlighting the softer consumer demand and elevated promotional environment as key contributors to the below-expectation results. <br><br>Despite these headwinds, Foot Locker managed to achieve positive comparable sales growth, a testament to its operational strategies and brand positioning. The company’s focus on basketball and sneaker culture, particularly through partnerships with Nike and Jordan Brand, played a role in sustaining consumer interest and driving foot traffic.</p> 
<p>While the company experienced a slowdown in early November, it witnessed a significant uptick in sales during the Thanksgiving week, especially in physical stores. This suggests that while consumer spending may be cautious, there are still periods of heightened activity that Foot Locker can capitalize on. Nevertheless, the company is taking a conservative stance moving forward, adjusting its full-year sales and earnings outlook to reflect the current market conditions.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Telegram group&nbsp;and never miss a breaking story.</a></p> 
 </div> 
</div> 
<h3 id="foot-locker-revises-full-year-2024-outlook-reflecting-more-cautious-apporach">Foot Locker Revises Full-Year 2024 Outlook, Reflecting More Cautious Apporach</h3> 
<p>Foot Locker has revised its full-year 2024 outlook, reflecting a more cautious approach in light of ongoing market challenges. The company now expects sales to decline by 1.5% to 1.0%, compared to its previous guidance of a -1.0% to +1.0% range. This adjustment is attributed to the continued promotional pressure and softer consumer demand outside of key selling periods.<br><br>In terms of earnings, Foot Locker has lowered its non-GAAP EPS guidance to a range of $1.20 to $1.30, down from the prior range of $1.50 to $1.70.</p> 
<p>The company anticipates a challenging environment in the fourth quarter, with projected sales changes ranging from -3.5% to -1.5% and gross margins expected to be between 29.0% and 29.2%. Despite these challenges, Foot Locker remains committed to its strategic initiatives, including the rollout of its new store concepts and digital enhancements.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p> 
<h3 id="br"><br></h3> 
<p>The post <a rel="nofollow" href="https://tokenist.com/foot-locker-inc-s-q3-sales-decline-by-1-4-to-1-96b-eps-and-revenue-miss/">Foot Locker, Inc.’s Q3 Sales Decline by 1.4% to $1.96B, EPS and Revenue Miss</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Foot Locker, Inc.’s Q3 Sales Decline by 1.4% to $1.96B, EPS and Revenue Miss

Table of Contents

Tokenist

Other articles published on Dec 4, 2024

Russian Court Sentences Hydra Dark Web Kingpin to Life in Prison

4 Top Meme Coin Presales with Huge Potential You Can't Miss

Crypto Liquidations Hits $588M Amidst XRP, Bitcoin and DOGE Volatility

Coinbase Backs Out of Turkish Crypto Market Amid Regulatory Pressures

Top Crypto for 2024: Qubetics Raises $4.2M as Toncoin Gains Whale Momentum and Hedera Surges 42%

21Shares Introduces Four New ETPs for Pyth, Ondo, Render, and Near

Join our free newsletter for daily crypto updates!