Foot Locker gave weak 2023 guidance while unveiling a new growth strategy Monday, after crushing earnings expectations for its fiscal fourth quarter. FL reversed sharply lower, after jumping near a buy point earlier in the session.
The footwear and apparel retailer's quarterly earnings per share came in nearly double estimates, while it revealed a new business strategy under the leadership of Mary Dillon. Dillon, a former Ulta Beauty chairman, was appointed president and chief executive of Foot Locker in August.
"We are entering 2023 with a focus on resetting the business — simplifying our operations and investing in our core banners and capabilities to position the company for growth in 2024 and beyond," Dillon said in the Foot Locker earnings release.
Foot Locker Earnings
Year over year, Foot Locker earnings fell nearly 42% to 97 cents per share, a result far better than feared though marking the fourth straight quarter of earnings declines. Revenue fell 0.3% to $2.334 billion, while comparable store sales increased 4.2%.
For fiscal 2023, Foot Locker guided EPS of $3.35-$3.65 including 15 cents from an extra 53rd week. It sees sales down 3.5%-5.5% including roughly 1% from the extra week, and comps down 3.5%-5.5%.
That broadly fell short of analyst expectations for EPS of $4.11 and sales down 5.2%, with comps down 1.5%, FactSet shows.
On Monday, the company unveiled its "Lace Up" growth strategy, which includes expanding "sneaker culture." It also included various financial goals for fiscal 2024-2026, such as 5%-6% sales growth and EPS growth in the low-to-mid twenties.
FL Stock
Shares of Foot Locker initially spiked 11%, then tumbled on the stock market today. FL stock fell 5.8% to 39.74 in big volume midday, further undercutting the 50-day moving average. Its early spike petered out just before a 47.32 buy point from a cup base.
Nike rose 0.8% Tuesday while Skechers fell 0.5%.
