Foot Locker Reports Record Earnings for Q1 FY2024
May 31, 2023
🌥️Earnings Overview
On May 19th 2023, FOOT LOCKER ($NYSE:FL) released its earnings results for the first quarter of FY2024, which had ended on April 30th 2023. Total revenue amounted to USD 1931.0 million, marking a decrease of 11.2% compared to Q1 in the previous year. Additionally, net income was USD 36.0 million, representing a 72.9% decline from the same quarter in the prior year.
Share Price
On Friday, Foot Locker reported record earnings for the first quarter of fiscal year 2024. Its stock opened at $30.6 and closed at $30.2, representing a 27.2% plunge from the previous closing price of 41.5. Foot Locker attributed the decrease to a decrease in comparable sales across North America, Europe, and Asia Pacific.
In addition, there was a significant decline in online sales due to the company’s shift away from discounts and promotions and toward higher-price items. Overall, while Foot Locker’s stock suffered a substantial drop on Friday, the company is still in a strong position with record earnings and healthy liquidity. Moving forward, it will be interesting to see how the company responds to this quarter’s results and whether or not it can continue its growth trajectory. 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 |
| 8.52k | 245 | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Foot Locker. More…
| Operations | Investing | Financing |
| 76 | -116 | -197 |
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 |
| 7.7k | 4.42k | 35.26 |
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 |
| 6.2% | 13.3% | 4.7% |
| FCF Margin | ROE | ROA |
| -2.0% | 7.6% | 3.3% |
Analysis
At GoodWhale, we recently conducted an analysis of FOOT LOCKER‘s well-being. Based on our Risk Rating, FOOT LOCKER is a medium risk investment in terms of financial and business aspects. We have detected two risk warnings in the balance sheet and the cash flow statement, and we invite you to register with us for more details. Our research team scrutinizes companies to identify any risks that may affect the company’s performance. We make it our mission to ensure that investors make informed decisions about their investments. We encourage investors to look beyond the financials, and focus on areas such as corporate governance, sustainability and potential opportunities that can be leveraged. By taking a comprehensive view, investors can have a better understanding of the company’s overall health and make better decisions on their investments. At GoodWhale, we are committed to helping investors make informed decisions. We strive to provide the most comprehensive data and analysis available, so that investors can make informed choices and minimize risk in their investments. Investing with confidence is our goal. 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 a decrease in total revenue of 11.2% and a drop in net income of 72.9% for the first quarter of FY2024. This resulted in a drop in stock price on the same day of the earnings announcement. Investors should analyze the company’s financials and performance to determine if these results are an anomaly or a long-term trend.
Additionally, it may be wise to compare Foot Locker’s performance to its competitors in order to gain a better understanding of the company’s position in the industry. Ultimately, investors should decide if the risks associated with investing in Foot Locker are worth the potential rewards.
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