Foot Locker delivers earnings beat but FY guidance trails estimates

By Senad Karaahmetovic

Foot Locker (NYSE:) reported better-than-expected to send its shares over 1% higher in premarket Monday.

This is despite Foot Locker offering a conservative full-year outlook that sees comparable sales falling between 3.5% and 5.5%, worse than the expected 3.1% decline. Full-year EPS is seen in the range of $3.35-3.65, missing the consensus of $4.15.

“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,” said President and Chief Executive Officer Mary Dillon.

For its fourth quarter, the company reported an adjusted EPS of $0.97 on revenue of $2.33 billion, better than the average analyst estimate for earnings of $0.51 per share on sales of $2.15B.

“Comparable-store sales grew by 4.2%, driven by increased traffic and improved access to high-quality inventory, resulting in broad-based strength across brands and regions,” FL said in a press release.

The company also reported a 5% year-over-year decrease in the number of locations.

Finally, Foot Locker also introduced the long-term financial targets for fiscal years 2024 through 2026. Comparable sales are seen growing 3-4% while total sales growth is expected in the range of 5-6%.

The company also expects to record an adjusted EPS growth in the low-to-mid-twenties.