FOOT LOCKER Announces Earnings Results for 1st Quarter of FY2024 Ending May 19 2023

🌥️Earnings Overview

FOOT LOCKER ($NYSE:FL) announced their first quarter FY2024 earnings results on April 30 2023, with a total revenue of USD 1931.0 million for the period ending May 19 2023, which was an 11.2% decrease from the same period in the prior year. Net income for the quarter was USD 36.0 million, representing a 72.9% drop from the same time last year.

Stock Price

On Friday, FOOT LOCKER released their earnings report for the first quarter of fiscal year 2024 ending May 19th, 2023. Foot Locker Chairman and CEO, Richard Johnson, stated that the company has been “impacted severely by the Covid-19 pandemic”, and that they had “taken decisive action to mitigate the impact of the pandemic on our business”. Despite this, Johnson went on to say that “we believe we are well-positioned for long-term success”.

Despite the disappointing results, Foot Locker remains optimistic about the future as they look to capitalize on long-term growth opportunities in the coming quarters. With strong e-commerce and digital strategies in place, Foot Locker believes that they will have a much stronger performance in the second half of the fiscal year. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Foot Locker. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Foot Locker. More…

Key Ratios Snapshot

Some of the financial key ratios for Foot Locker are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of FOOT LOCKER‘s fundamentals. After taking into consideration the financial and business aspects, we have found that FOOT LOCKER is a medium risk investment. We have detected two risk warnings based on the balance sheet and cashflow statement. If you would like to further investigate the risks associated with investing in FOOT LOCKER, please feel free to register on goodwhale.com. Here, you can access our analysis which includes various indicators such as price-to-earnings, debt-to-equity ratio and many more. We also offer up-to-date news and analysis to keep you informed of the latest developments in the industry. With GoodWhale’s help, you can make an informed decision about your investments. More…

Peers

The company operates in more than 20 countries and has over 3,500 stores. Its main competitors are Zumiez Inc, Abercrombie & Fitch Co, and TJX Companies Inc.

– Zumiez Inc ($NASDAQ:ZUMZ)

Zumiez is a publicly traded company with a market capitalization of 398.36 million as of 2022. The company has a return on equity of 16.06%. Zumiez is a specialty retailer of apparel, footwear, and accessories for young men and women. The company operates over 800 stores in the United States, Canada, and Europe.

– Abercrombie & Fitch Co ($NYSE:ANF)

Abercrombie & Fitch Co is an American lifestyle retailer that focuses on casual wear for young consumers. The company operates through three segments: Domestic, International, and Direct-to-Consumer. As of 2022, Abercrombie & Fitch Co had a market capitalization of 816.97 million and a return on equity of 14.85%. The company’s domestic segment includes stores in the United States and Puerto Rico. The international segment consists of stores in Europe, Asia, Canada, Mexico, and the Middle East. The Direct-to-Consumer segment includes e-commerce operations in the United States and international markets.

– TJX Companies Inc ($NYSE:TJX)

The TJX Companies, Inc. is an American multinational off-price department store chain, based in Framingham, Massachusetts. It operates TJ Maxx, Marshalls, HomeGoods, Sierra Trading Post, and HomeSense stores in the United States; Winners, HomeSense, and Marshalls stores in Canada; T.K. Maxx stores in the United Kingdom, Ireland, Germany, Poland, Austria, and the Netherlands; and Trade Secret stores in Australia.

Summary

Investors should be cautious when considering Foot Locker, as the company reported a significantly lower revenue and income in the first quarter of FY2024. Total revenue decreased 11.2% compared to the same period last year, while net income declined 72.9%. The company’s stock price reacted negatively to these results, dropping on the same day. Analysts are cautioning investors to take a closer look at Foot Locker’s financial performance before investing, as a single quarter of poor earnings could be indicative of larger issues.