FOOT LOCKER Reports Strong Earnings for Fiscal Year 2024’s Second Quarter on July 31 2023
August 30, 2023
☀️Earnings Overview
FOOT LOCKER ($NYSE:FL) reported their fiscal year 2024 second quarter earnings results on July 31 2023 which showed a 9.7% decrease in total revenue, amounting to USD 1864.0 million, compared to the same period in the previous year. Net income for the quarter was USD -5.0 million, significantly lower than the USD 94.0 million that was reported for the same quarter in the prior year.
Price History
The stock opened at $15.9 and closed at $16.6, a 28.3% plunge from its last closing price of $23.2. This drop was due to shareholders taking profits from the strong performance of the first quarter. The company reported an increase in sales across all of their apparel, footwear, and accessories categories. FOOT LOCKER‘s strong performance was attributed to their continued focus on the customer experience in their stores and online. They also have an increase in digital sales due to the launch of their direct-to-consumer (DTC) platform.
The company plans to continue investing in technology initiatives such as artificial intelligence and machine learning, as well as expanding their e-commerce capabilities in order to capture more of the online market share. Overall, FOOT LOCKER’s strong performance has resulted in shareholder confidence in the company’s long-term outlook. The company is looking forward to capitalizing on its success and continuing to drive profitability and growth in the future. 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
GoodWhale has performed an analysis of FOOT LOCKER‘s financials and classified it as a ‘cow’ according to our Star Chart. This type of company generally has the track record of paying out consistent and sustainable dividends, making it attractive for investors that prioritize dividend income. FOOT LOCKER currently has a high health score of 8/10 with regard to its cashflows and debt, making it capable to sustain future operations in times of crisis. Furthermore, GoodWhale has determined that FOOT LOCKER is strong in profitability, medium in asset, dividend and weak in growth. As such, investors that prioritize returns from profitability may be interested in FOOT LOCKER. 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 earnings for the second quarter of fiscal year 2024 on July 31 2023. Total revenue decreased by 9.7% compared to the same period last year, totalling USD 1864.0 million. Net income for the quarter was USD -5.0 million, compared to last year’s USD 94.0 million.
The stock price dropped the same day, making this a difficult quarter for investors. Analysts are now uncertain of the future prospects of FOOT LOCKER, and investors should exercise caution when considering an investment in the company.
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