Foot Locker Reports Q2 FY2024 Earnings Results for July 31 2023
September 5, 2023
🌥️Earnings Overview
On August 23 2023, FOOT LOCKER ($NYSE:FL) released their financial results for the second quarter of FY2024, which ended on July 31 2023. Compared to the same period a year ago, total revenue for the quarter decreased by 9.7%, amounting to USD 1864.0 million. Net income for the quarter was USD -5.0 million, a decrease from the previous year’s figure of USD 94.0 million.
Price History
On Wednesday, Foot Locker reported their quarterly earnings results for the fiscal year 2024 ending on July 31, 2023. The company’s stock opened at $15.9 and closed at $16.6, plunging by 28.3% from their prior closing price of $23.2. The drop in stock value was in line with the company’s poor performance over the course of the quarter. Over the last three months, Foot Locker’s sales results have been lagging behind expectations, due to a combination of negative external factors such as increasing competition in the market and a decrease in consumer spending.
This significant drop in profitability is due to lower sales and a decrease in gross profit margins. Although, the company is hopeful to turn around their performance in the coming quarters, it remains to be seen if they will be able to do so. In the meantime, investors will be closely following Foot Locker’s results in order to determine if their stock will continue to remain weak or if they will be able to make a comeback. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Foot Locker. More…
| Total Revenues | Net Income | Net Margin |
| 8.31k | 146 | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Foot Locker. More…
| Operations | Investing | Financing |
| 91 | -145 | -160 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Foot Locker. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.54k | 4.29k | 34.95 |
Key Ratios Snapshot
Some of the financial key ratios for Foot Locker are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.9% | 2.4% | 3.0% |
| FCF Margin | ROE | ROA |
| -1.7% | 4.8% | 2.1% |
Analysis
At GoodWhale, we have conducted an in-depth analysis of FOOT LOCKER‘s fundamentals. We have come to the conclusion that FOOT LOCKER is a medium risk investment in terms of both financial and business aspects. Our Risk Rating assessment has revealed two risk warnings in FOOT LOCKER’s balance sheet and cashflow statement. We strongly recommend that interested investors register with us to get a more detailed breakdown and evaluation of these risk warnings. With our extensive expertise and knowledge, we can help guide you through the process of making an informed investment decision. 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
FOOT LOCKER reported their second quarter earnings results for FY2024 on August 23 2023, with total revenue of USD 1864.0 million, which is a 9.7% decrease year-over-year. Net income for the period was USD -5.0 million, compared to a profit of USD 94.0 million in the same period last year. The stock price dropped the same day, suggesting that investors are cautious about the company’s performance. Going forward, investors should closely monitor FOOT LOCKER’s financials to gain insight into their overall performance and make informed investing decisions.
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