Foot Locker, Inc. reported its third consecutive quarter of ~2.5% comparable sales growth, with the flagship brand posting strong 5.5% comps and margins returning to normal levels. Despite positive trends, the stock is down 20-40% due to recession fears and previous overvaluation. Current valuation is 10-12x FY25 guidance. FY24 results showed strong core performance, especially in footwear, but cautious FY25 guidance reflects potential macroeconomic challenges and consumer discretionary pressures.
A common theme in recent earnings calls involving The Home Depot, Lowe's and Target has been the “cautious consumer” as shoppers are becoming more selective about their spending, often waiting for the right moment to make a purchase rather than buying impulsively.
Foot Locker's fiscal fourth-quarter results reflect lower y/y revenues. The gross margin expands 300 bps to 29.6% in the quarter.
Shares of shoe retailer Foot Locker (FL 8.38%) soared on Wednesday after the company reported financial results for its fiscal fourth quarter of 2024, ended Feb. 1, 2025. As of 10:15 a.m.
Foot Locker Inc (NYSE:FL) delivered a mixed fourth-quarter earnings report, with higher-than-expected adjusted earnings of 86 cents per share surpassing analyst expectations of 72 cents, according to FactSet.
Foot Locker (FL) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.38 per share a year ago.
Foot Locker's stock tripped up by downbeat full-year outlook, which offset continued sales improvements.
Foot Locker's fiscal 2026 earnings guidance sharply misses analysts' expectations.
Foot Locker delivered mixed holiday results and warned that profits will be under pressure in the year ahead. Its largest brand partner, Nike, is using discounts to clear out stale inventory, which is impacting Foot Locker's performance.
This week, attention will be on Trump's trade war, the U.S. jobs report, and the latest Q4 earnings. Costco's earnings could drive growth, making it an attractive option for optimistic investors, while Foot Locker is expected to report disappointing results due to low demand for non-essential clothing, suggesting it may be best to steer clear. If you're interested in more trading ideas, consider subscribing to access ProPicks AI recommendations. U.S. stocks finished higher on Friday, concluding a volatile week.