Foot Locker lifts guidance after third-quarter earnings beat
By Josh White
Date: Friday 18 Nov 2022
(Sharecast News) - Foot Locker beat Wall Street expectations on third-quarter profit on Friday, as well as an unexpected rise in same-store sales as the retailer lifted its full-year expectations.
The New York-based footwear and clothing retailer reported net income of $96m or $1.01 per share for the period, down from$158m or $1.52 per share year-on-year.
Adjusted earnings, excluding non-recurring items, came in at $1.27 per share, beating the $1.11 economists had pencilled in.
Same-store sales surprised to the upside, rising 0.8% compared to the year-ago period, against market forecasts for a 6% fall.
Total sales were down 0.7% at $2.17bn, although that was still above expectations for $2.09bn.
Looking ahead, Foot Locker lifted its expectations for the full 2022 year, guiding for earnings per share of between $4.42 and $4.50, from a previous $4.25 to $4.45.
It lifted its net sales forecast to a fall of between 4% and 5% from a 6% to 7% decline, with same-store sales now anticipated to be 4% to 5% below 2021, compared to the 8% to 9% it previously expected.
"Foot Locker's solid third quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organisation that I am honoured to now be leading," said president and chief executive officer Mary Dillon, who was appointed in August after leading the Nasdaq-listed cosmetics retailer Ulta Beauty since 2013.
"Despite the tough environment, our expanding customer base remained resilient, and I'm proud that our team delivered sales above our expectations, thanks to their exceptional execution.
"I see tremendous opportunity to further leverage the power of our brand equity and our incredible field team to drive our growth in this exciting category."
At 0729 EST (1229 GMT), shares in Foot Locker were up 14.39% in pre-market trading at $37.75, having closed up 5% on Thursday.
Reporting by Josh White for Sharecast.com.
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