$FL (-2,05%) | Foot Locker Q3 Earnings Highlights:
๐น EPS: $0.33 (Est. $0.42) ๐ด; DOWN YoY from $0.30
๐น Revenue: $1.96B (Est. $2.02B) ๐ด; DOWN -1.4% YoY
๐น Comparable Sales: +2.4% (Est. +3.2%) ๐ด
Q4 Guidance:
๐น Revenue: $2.31B-$2.36B (Est. $2.35B) ๐ก
๐น EPS: $0.70-$0.80 (Est. $0.94) ๐ด
๐น Gross Margin: 29.0%-29.2%
FY24 Guidance:
๐น Revenue: $8.09B-$8.13B (Est. $8.13B) ๐ก
๐น EPS: $1.20-$1.30 (Est. $1.53) ๐ด
Q3 Margins and Profitability:
๐น Gross Margin: 29.8% (UP 230 bps YoY); driven by reduced markdown levels
๐น SG&A Expense: 24.8% of sales (UP 210 bps YoY); reflecting tech and brand-building investments
๐น Operating Margin: 2.1% (DOWN YoY from 3.0%)
Q3 Inventory and Balance Sheet:
๐น Inventory: $1.7B (DOWN -6.3% YoY)
๐น Cash and Cash Equivalents: $211M
๐น Total Debt: $445M
Operational Metrics:
๐น Comparable sales growth driven by Foot Locker and Kids Foot Locker (+2.8%) and Champs Sports (+2.8%).
๐น Gross margin improved due to reduced markdowns but impacted by elevated promotional activity.
๐น SG&A rate increase driven by investments in technology, brand building, and expense management discipline.
Store Updates:
๐น Opened 10 stores, closed 24 stores, remodeled/relocated 20 stores, and refreshed 167 stores.
๐น Total store count: 2,450 stores across 26 countries, with 214 licensed stores in the Middle East and Asia.
Strategic Updates:
๐ธ Continued rollout of "Home Court" experience in collaboration with Nike and Jordan Brand.
๐ธ Announced a multi-year partnership with the Chicago Bulls.
๐ธ Launched a revamped mobile app and enhanced FLX Rewards Program.
CEO Commentary:
๐ธ "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." โ Mary Dillon, CEO