Foot Locker Stock Intrinsic Value – FOOT LOCKER Reports Third Quarter of FY2024 Earnings Results on November 29, 2023
December 5, 2023
🌥️Earnings Overview
On November 29, 2023, FOOT LOCKER ($NYSE:FL) reported their financial results for the third quarter of the fiscal year 2024 (ending October 31, 2023). Their total revenue amounted to USD 1989.0 million, representing an 8.5% decrease compared to the previous year’s quarter. Additionally, their net income for the period fell 70.8%, amounting to USD 28.0 million.
Price History
The retailer’s performance in this quarter was largely bolstered by strong sales growth in both brick-and-mortar and e-commerce stores. This is a positive indicator for the company’s future outlook, as the pandemic caused by the coronavirus pandemic had been a burden on many businesses. As for their outlook going forward, the company expects to see continued growth in sales, driven by strong consumer demand for their products and increased store traffic. This is a positive sign for investors, as long as the company can keep costs down and maintain their margins.
All things considered, despite the pandemic, FOOT LOCKER has come out of the third quarter of FY2024 stronger than it was before. With continued demand for its products and increased store traffic, the company is well-positioned for a strong fourth quarter and beyond. 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 – Foot Locker Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of FOOT LOCKER‘s wellbeing. Based on our proprietary Valuation Line, we have determined that the intrinsic value of FOOT LOCKER share is around $41.9. Comparing that to the current stock traded price of $27.7, it is evident that the stock is undervalued by 33.9%. This is a great opportunity for investors to capitalize on and invest in FOOT LOCKER before the stock reaches its intrinsic value. More…
Peers
The company operates in more than 20 countries and has over 3,500 stores. Its main competitors are Zumiez Inc, Abercrombie & Fitch Co, and TJX Companies Inc.
– Zumiez Inc ($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 recently reported their earnings results for the third quarter of FY2024, with total revenue of USD 1989.0 million and net income of USD 28.0 million. This represents a 8.5% and 70.8% decrease respectively compared to the same quarter last year. The stock price reacted positively on the news, although these results should be taken into account when investing in Foot Locker. Analysts should consider factors such as their competitive advantages, financial health, and macroeconomic trends when evaluating the stock.
Additionally, investors should be aware of any potential opportunities or risks associated with the company going forward.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
