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Highlights
- Foot Locker Inc’s (FL) comparable-store sales increased by 2.2% in Q3, FY21.
- The company's total sales increased by over 3% in Q3, FY21.
- The FL stock rose around 47% YTD.
Shares of Foot Locker, Inc. (NYSE:FL) fell more than 12% on Friday after the company reported weak third-quarter results and voiced concerns over the continued supply chain disruptions.
The FL stock plunged 12.91% to US$50.1299 in intraday trading at 1:02 pm ET. It was down more than 5% in the premarket session.
The New York-based sports and footwear retailer expressed concerns over the continued supply-chain disruptions ahead of the holiday shopping season.
However, the comparable-store sales, a key retail metric, rose 2.2% in the quarter.
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Foot Locker earnings and stock performance
Foot Locker’s total sales increased by 3.9% YoY to US$2.18 billion in Q3, FY21, compared to US$2.10 billion in the same quarter of the previous year.
It reported a net income of US$158 million or US$1.52 per share for the 13 weeks ended on October 30, 2021, versus an income of US$265 million or US$2.52 per share in the comparable quarter of the previous year.
On a non-GAAP basis, the company earned US$1.93 per share in Q3, FY21, compared to US$1.21 per share in the third quarter of fiscal 2020.
Foot Locker’s market cap is US$5.97 billion, with a P/E ratio and forward P/E one year of 5.93 and 8.28, respectively. Its EPS is US$9.71.
The FL stock saw the highest price of US$66.71 and the lowest price of US$36.94 in the last 52 weeks. Its trading volume on November 18 was 4,147,974.
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CFO Andrew Page said the global supply-chain hurdles will continue to affect its fourth-quarter results. However, he added that they are well "positioned for the holiday season, with a positive momentum and inventory levels" for meeting consumer demand.
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Bottomline
The company has opened 32 new stores and renovated or relocated 29 stores during the quarter. The FL stock gained 47.21% YTD. Analysts expect improvement in the company’s revenue position because of the upbeat consumer spending outlook.
