Foot Locker (NYSE:FL)
On Friday morning before the market opened, Foot Locker announced first quarter earnings that were in line with analyst expectations but shares were slightly down premarket as of the time of this writing. The shoe retailer announced first quarter earnings of $1.39 per share on $1.99 billion in revenues while analyst were looking for $1.39 earnings per share on $2 billion in revenues. This is also compared to the same period ending last year when the company announced earnings of $1.29 per share on $1.92 billion in revenues. Currently analysts have an average price target of $75.61.
Looking at the chart you will see that shares are currently trading in the $56.80 range in the premarket after closing Thursday at $58.55, a 2.9% drop in price. We should see some support come in at $56 and $54 followed by a big level at $52 while resistance will be met at $58 and $60. Shares are well below their 200-day moving average that is currently sitting at $66.17. Look for active trade in this name as volume and volatility usually pick up after an earnings release.
CEO Comments
We produced the most profitable quarter in the Company’s long history, an accomplishment of which everyone at Foot Locker, Inc. should be very proud,” said Richard Johnson, Chairman of the Board and Chief Executive Officer. “Our team navigated well through a variety of challenges, not least of which were rapidly-shifting product category preferences by our customers, to achieve our 25th consecutive quarter of meaningful sales and profit increases over the prior year. Never has it been more apparent how important is the work that we have done to build leadership positions across channels, geographies, banners, and product categories.
We continue to manage the business tightly, particularly in terms of inventory, occupancy expense, and wages,” said Lauren Peters, Executive Vice President and Chief Financial Officer. “We are focused on productivity as we work to drive top line sales, and we remain confident that we can achieve a mid-single digit comparable sales gain and a double-digit earnings per share increase for 2016.
FL Profile
Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates in two segments: Athletic Stores and Direct-to-Customers. The Athletic Stores segment is an athletic footwear and apparel retailer whose formats include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction and SIX:02, as well as the retail stores of Runners Point Group, including Runners Point and Sidestep. The Direct-to-Customers segment includes Footlocker.com, Inc. and other affiliates, including Eastbay, Inc., and the direct-to-customer subsidiary of Runners Point Group, which sell to customers through their Internet and mobile sites and catalogs. As of January 31, 2015, the Company operated 3,423 primarily mall-based stores in the United States, Canada, Europe, Australia and New Zealand. As of January 31, 2015, the Company operated a total of 78 franchised stores, of which 31 are in the Middle East, 27 in Germany and Switzerland, and 20 in the Republic of Korea.