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10Dick's Sporting Goods ($DKS (+0.66%)) is on the verge of acquiring Foot Locker ($FL (+0%)) for around USD 2.3 billion - this corresponds to USD 24 per share and a premium of almost +90 % compared to Wednesday's closing price (USD 12.87).
🗓 Possible deal closing: Thursday
📈 *Reaction after the close:*
* Foot Locker ($FL): +62.32 %
* Dick's Sporting Goods ($DKS): -5 %
🗣 Official confirmation from both companies is still pending.
🔹 Adj. EPS: $0.86 (Est. $0.72) 🟢
🔹 Revenue: $2.24B (Est. $2.32B) 🔴; -5.8% YoY
🔹 Comparable Sales: +2.6% YoY
🔹 Gross Margin: 29.3%, +300 bps YoY
FY26 Guidance:
🔹 Adj. EPS: $1.35 to $1.65 (Est. $1.71) 🔴
— Reflects ongoing macro headwinds and softer consumer spending trends.
🔹 Revenue Change: -1.0% to +0.5%
🔹 Comparable Sales Growth: +1.0% to +2.5%
🔹 Gross Margin: 29.3% to 29.7%
🔹 SG&A Rate: 24.3% to 24.5%
Segment Performance:
🔹 Global Foot Locker & Kids Foot Locker Comparable Sales: +3.6% YoY
🔹 Champs Sports Comparable Sales: +1.8% YoY
Balance Sheet & Store Updates:
🔹 Cash & Cash Equivalents: $401M
🔹 Total Debt: $446M
🔹 Inventories: +1.1% YoY
🔹 Store Base: 2,410 stores across 26 countries
🔹 Q4 Store Activity: 7 new openings, 47 closures, 160 store refreshes
$FL (+0%) | Foot Locker Q3 Earnings Highlights:
🔹 EPS: $0.33 (Est. $0.42) 🔴; DOWN YoY from $0.30
🔹 Revenue: $1.96B (Est. $2.02B) 🔴; DOWN -1.4% YoY
🔹 Comparable Sales: +2.4% (Est. +3.2%) 🔴
Q4 Guidance:
🔹 Revenue: $2.31B-$2.36B (Est. $2.35B) 🟡
🔹 EPS: $0.70-$0.80 (Est. $0.94) 🔴
🔹 Gross Margin: 29.0%-29.2%
FY24 Guidance:
🔹 Revenue: $8.09B-$8.13B (Est. $8.13B) 🟡
🔹 EPS: $1.20-$1.30 (Est. $1.53) 🔴
Q3 Margins and Profitability:
🔹 Gross Margin: 29.8% (UP 230 bps YoY); driven by reduced markdown levels
🔹 SG&A Expense: 24.8% of sales (UP 210 bps YoY); reflecting tech and brand-building investments
🔹 Operating Margin: 2.1% (DOWN YoY from 3.0%)
Q3 Inventory and Balance Sheet:
🔹 Inventory: $1.7B (DOWN -6.3% YoY)
🔹 Cash and Cash Equivalents: $211M
🔹 Total Debt: $445M
Operational Metrics:
🔹 Comparable sales growth driven by Foot Locker and Kids Foot Locker (+2.8%) and Champs Sports (+2.8%).
🔹 Gross margin improved due to reduced markdowns but impacted by elevated promotional activity.
🔹 SG&A rate increase driven by investments in technology, brand building, and expense management discipline.
Store Updates:
🔹 Opened 10 stores, closed 24 stores, remodeled/relocated 20 stores, and refreshed 167 stores.
🔹 Total store count: 2,450 stores across 26 countries, with 214 licensed stores in the Middle East and Asia.
Strategic Updates:
🔸 Continued rollout of "Home Court" experience in collaboration with Nike and Jordan Brand.
🔸 Announced a multi-year partnership with the Chicago Bulls.
🔸 Launched a revamped mobile app and enhanced FLX Rewards Program.
CEO Commentary:
🔸 "While our third-quarter performance fell short of expectations, we remain focused on executing our strategies, including the Lace Up Plan, and leveraging key partnerships to drive growth and enhance customer engagement." – Mary Dillon, CEO
$FL (+0%) I just went shoe shopping with my daughter.
Sales are now popping up like this - anyone who is not invested now...
And pays with $V (-0.28%)
🤣🤣📈
As every Sunday, the most important news of the last week and the dates of the coming week.
Here are the dates of the coming week:
https://youtube.com/shorts/xwA7DCnogM4?si=VWzzbPzr4BMTQGHj
Monday:
#china Lowers interest rates on one of the central bank's interest rate lines. The one-year loan now costs 3.45% interest instead of 3.55%. China is trying to stimulate the economy with this. The real estate sector in particular is expected to benefit from lower interest rates.
https://www.bbc.com/news/business-66567085.amp
$PANW (+2.09%) Palo Alto Networks can surprise the stock market with strong figures. The cybersecurity provider increased sales by 26%. In addition, there was a positive outlook for the full year.
Good omen for #inflation producer prices fall for the first time since 2020. Producer prices are seen as a harbinger of actual inflation; if producers produce more cheaply, this also depresses the inflation rate in the future. Compared with the previous year, producer prices have fallen by 6.0%, significantly more than the assumed 5.1%.
According to a Bundesbank report, the economic situation in Germany remains tense. There will probably be a 0 round in the 3rd quarter as well, meaning no growth.
Tuesday:
$F3C (+1.54%) SFC Energy remains the big hope in our moonshot portfolio. The figures were above expectations. Second quarter sales grew 46%. The guidance for the full year is increased.
$COTY (-1.14%) Coty, which produces, among other things, perfumes for luxury labels, reports significant growth. Sales increased by 16%. However, profit was below expectations due to higher costs.
$9888 (-1.78%) Baidu performs better than expected. The Chinese equivalent of Google increases advertising revenues by 15%.
The construction manufacturer $STO3 (-0.25%) Sto lowers its forecast. Due to poor weather conditions, among other things, full-year sales will probably be slightly lower.
Monday evening $ZM (+1.74%) Zoom still presented figures above analysts' expectations.
Wednesday:
On average, a bank account in Germany costs 100 euros per year, according to a study. Although there is interest again almost everywhere, but not on the current account.
Poor purchasing managers' index figures, a clear signal of recession. The index plummeted to 44.7 points. Expected was only a decline to 48.3 points. In particular, the service sector sags more than expected, so far poor industrial data could be compensated here.
At $FL (+0%) Foot Locker is currently not doing so well. Dividend and outlook are being lowered.
$NVDA (+3.34%) Nvidia does not disappoint, figures and outlook are above expectations. Sales increased year-on-year from USD 6.7 billion to USD 13.5 billion.
Thursday:
The BRICS states expand by 6 countries. This also increases the economic power and global influence, the declared goal is to form a counterpole to the G7. Through the merger, the interests of the member countries should be better enforced. Brazil, Russia, India, China and South Africa are now joined by Iran, Saudi Arabia, the UAE, Egypt, Ethiopia and Argentina.
$CEVMY (-2.58%) CTS Eventim is benefiting from the event boom. The ticket marketer broke the billion mark in the first half of the year and reported a 39% increase in sales.
Friday:
Inflation is also coming back in Japan 🇯🇵. The increase was still at 2.8% year-on-year. The expected figure was 2.9%. The whole thing is remarkable, because the Japanese central bank has changed virtually nothing in the interest rate level.
According to new figures, Germany's GDP neither grew nor shrank in the second quarter. Economic output stagnated. This means that we have experienced three quarters in a row without growth.
Short squeeze at $VFS (+1.25%) Vinfast, the manufacturer from Vietnam 🇻🇳 is trying its hand as an electric car manufacturer and is considered an industrial hope in the country.
Powell emphasizes at the Jackson Hole meeting that there could be another interest rate hike, but that they want to proceed 'cautiously'. Basically, nothing new in the communication. The market is sold off a bit, it was probably hoped that interest rate cuts would also be discussed.
https://stock3.com/news/fed-chef-powell-sind-vorsichtig-bei-weiteren-zin-12954987
These are the most important dates of the coming week:
Monday: 03:30 Retail Sales (AUS)
Tuesday: 15:00 Housing Price Index (USA)
Wednesday: 14:00 Inflation data (DE)
Thursday: 11:00 Inflation data (EU)
Friday: 03:45 Caixin Production (China)
HOLY. SHIT.
I dodged a bullet. Sold yesterday with -10%, currently it would be -46% (!)
Proof picture for those who don't believe my timing: https://imgur.com/a/jEWteHn
I can't believe how lucky I was. Sold Foot Locker yesterday because it briefly slipped below support, because I didn't necessarily want to hold through earnings and because I'd rather buy more CROX. In hindsight a VERY smart decision, uff.
https://www.tradingview.com/x/gFjWgo4X/
Absolutely bullish chart, textbook. Perfect double bottom formed, the two green arrows mark the low, double bottom confirmed with yesterday's candle, now rising again.
Bought in the pre-market and it is shooting straight up. Significantly higher prices possible with the setup. If it also cracks $49 there is room up to $56 which would be 20%.
𝗠𝗮𝗿𝗸𝗲𝘁 𝗡𝗲𝘄𝘀 🗞️
𝗖𝘂𝗿𝗲𝘃𝗮𝗰 𝗺𝗶𝘁 𝗩𝗲𝗿𝗹𝘂𝘀𝘁 / 𝗔𝗹𝗶𝗯𝗮𝗯𝗮 𝘃𝗲𝗿𝘂𝗻𝘀𝗶𝗰𝗵𝗲𝗿𝘁 / 𝗗𝗔𝗢 𝗴𝗲𝘄𝗶𝗻𝗻𝘁 𝗳𝗮𝘀𝘁 𝗦𝗼𝘁𝗵𝗲𝗯𝘆'𝘀 𝗔𝘂𝗸𝘁𝗶𝗼𝗻
𝗘𝘅-𝗗𝗮𝘁𝗲𝘀 📅
As of today, Mowi ($MHGVY (-0.54%)) and United Parcel Service ($UPS (+0.06%)) are trading ex-dividend.
𝗤𝘂𝗮𝗿𝘁𝗮𝗹𝘀𝘇𝗮𝗵𝗹𝗲𝗻 📈
Today, Gesco ($GSC1 (+2.82%)), Foot Locker ($FL (+0%)), RLX Technology ($RLX (+0%)), SOMPO Holdings ($8630 (+1.1%)) and Sto ($STO3 (-0.25%)) present their figures.
𝗠𝗮𝗿𝗸𝗲𝘁𝘀 🏛️
Curevac ($CVAC (+0.04%)) - The biotech company's revenue increased by 463% to 29.3 million euros in the third quarter compared to the same period last year. The increase in sales was mainly due to the cooperation with the British pharmaceutical group GlaxoSmithKline ($GSK (-0.58%)), according to the Tübingen-based company. However, Curevac's operating loss increased from 36.7 million euros to 143.1 million euros compared to the same period last year. This was due to the high research and development costs for the company's own Covid-19 vaccine candidate.
Alibaba ($2RR (-1.61%)) - There was no clear trend on the Asian stock exchanges on Thursday. In Japan, the Topix and the Nikkei index, which comprises 225 stocks, rose by 0.4 percent. The index of the most important companies in Shanghai and Shenzen also gained 0.2 percent. By contrast, the leading Hang Seng index in Hong Kong lost 1.8 percent as disappointing figures from Chinese technology giant Alibaba weighed heavily on the index. Inflation data from Japan showed consumer price inflation of 0.1% in October, in line with expectations from the run-up.
𝗖𝗿𝘆𝗽𝘁𝗼 💎
US Constitution - The online group "ConstitutionDAO" intended to bid for the last privately owned edition of the US Constitution at a public auction at Sotheby's on Thursday and failed. Instead, the edition was purchased by an unknown bidder for 41 million US dollars. Only a week ago, the project participants began to join forces as a decentralized autonomous organization (DAO) to pool funds for the auction. Over 49 million US dollars in Ethereum donations were collected via Juicebox ($ETH (+1.92%)) were collected. In return, the 17,437 supporters received governance tokens called PEOPLE, which were not intended to represent fractionalized ownership, but to give the token owners the opportunity to decide on proposals for structure, governance and operational direction.
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