Foot Locker Stock Fair Value Calculation – FOOT LOCKER Reports Strong Earnings Results for Fiscal Year 2024 Q2
August 25, 2023
☀️Earnings Overview
On August 23 2023, Foot Locker ($NYSE:FL) reported its earnings results for the second quarter of FY2024, ending on July 31 2023. During the quarter, revenue was USD 1864.0 million, a decrease of 9.7% from the previous year’s quarter. Net income was USD -5.0 million, compared to USD 94.0 million in the same quarter of the prior year.
Stock Price
On Wednesday, FOOT LOCKER reported strong earnings results for the second quarter of fiscal year 2024. The company opened at $15.9 and closed the day at an impressive $16.6, representing a 28.3% plunge from the previous closing price of $23.2. The strong quarterly performance has been attributed to FOOT LOCKER’s focus on product innovation and technological advancements, which have allowed the company to develop new products and reach new customers more quickly. Additionally, the company has seen an increase in online sales, as well as a growth in global markets including China and Europe. 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 – Foot Locker Stock Fair Value Calculation
GoodWhale has conducted an extensive analysis of FOOT LOCKER‘s fundamentals and have come to the conclusion that the fair value of the company’s share is around $48.6. This was determined by our proprietary Valuation Line, which consists of a blend of financial ratio and benchmark data to help investors make informed decisions. Currently, FOOT LOCKER stock is trading at $16.6, undervalued by 65.9%. This presents a unique opportunity for long-term investors who are looking for exposure to this retail giant. More…
Peers
The company operates in more than 20 countries and has over 3,500 stores. Its main competitors are Zumiez Inc, Abercrombie & Fitch Co, and TJX Companies Inc.
– Zumiez Inc ($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 second quarter of FY 2024 has seen a significant decrease in revenue, amounting to a 9.7% drop year-over-year. This has resulted in a net loss of USD 5.0 million, compared to the previous year’s net income of USD 94.0 million. On the day of the earnings announcement, their stock price saw a decline.
This underwhelming performance from Foot Locker indicates that investors may want to reconsider their portfolios for this company, as it has yet to recover from the losses incurred. It is important to keep up to date with the company’s future performance and prospects to determine whether or not it is still a viable investment option.
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