FOOT LOCKER Reports Strong Q3 Earnings for FY2024
December 13, 2023
☀️Earnings Overview
On November 29 2023, FOOT LOCKER ($NYSE:FL) reported their earnings for Q3 of FY2024 which ended on October 31 2023. Total revenue for the quarter was USD 1989.0 million, 8.5% lower than the same period in the previous year. Net income for the quarter was USD 28.0 million, a decrease of 70.8% compared to the year prior.
Market Price
The stock opened at $27.4 and closed at $27.7, with a soar of 16.1% from the prior closing price of 23.8. The notable increase in stock price was largely propelled by better-than-expected sales of the retailer’s shoes, apparel, and accessories. In addition, new stores openings in the U.S., Canada, and Asia have also contributed to the company’s success. The company is investing strongly in digital initiatives to increase customer engagement, and is also looking at new opportunities for growth in the form of potential acquisitions and partnerships. 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 |
| 8.13k | 78 | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Foot Locker. More…
| Operations | Investing | Financing |
| 107 | -125 | -162 |
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 |
| 7.42k | 4.21k | 34.48 |
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 |
| 2.4% | -9.7% | 1.9% |
| FCF Margin | ROE | ROA |
| -1.5% | 2.9% | 1.3% |
Analysis
As GoodWhale, we conducted an analysis of FOOT LOCKER‘s fundamentals. Our star chart shows that FOOT LOCKER is strong in asset, medium in profitability, and weak in dividend and growth. We categorize FOOT LOCKER as an ‘elephant’, meaning that the company is rich in assets after liabilities have been deducted off. Given FOOT LOCKER’s fundamentals, we can anticipate that value investors may be interested in the company. This is further supported by its high health score of 7/10, which is a reflection of its cashflows and debt capabilities. This indicates that FOOT LOCKER is able to navigate through any crisis without the risk of bankruptcy. 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‘s third quarter financial results for FY2024 showed a decline in both revenue and net income compared to the same period last year. Despite this, Foot Locker stock rose on the news due to investor confidence in the company’s ability to manage through the difficult environment. Investors are hoping that as the pandemic subsides, Foot Locker will be able to capitalize on its strong position in the market and return to growth. Companies like Foot Locker that have been resilient during the pandemic have become attractive investments, as investors look to capitalize on their potential success in the future.
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