Foot Locker Q3 Profit Tops View, Updates FY23 Outlook; Stock Up In Premarket

(RTTNews) - Specialty athletic retailer Foot Locker, Inc. (FL) reported Wednesday weak profit and sales in its third quarter. Earnings, however, topped market estimates. Further, the company issued fourth- quarter outlook, and trimmed the higher end of fiscal 2023 earnings view. The company also updated annual sales guidance.

In pre-market activity on the NYSE, the shares were gaining around 11.2 percent to trade at $26.50.

In the third quarter, net income was $28 million, compared to $96 million last year. Earnings per share declined to $0.30 from prior year's $1.01. The prior year's adjusted net income was $121 million or $1.27 per share.

On average, 187 analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales decreased 8.6 percent to $2 billion from $2.17 billion in the third quarter of 2022. Excluding the effect of foreign exchange rate fluctuations, total sales for the third quarter decreased 10 percent.

Analysts expected sales of $1.96 billion.

Looking ahead for the fourth quarter, the company projects adjusted earnings in a range $0.26 to $0.36 per share on net sales decline of 2 to 4 percent, with comparable sales decline of 7 percent to 9 percent. The Street is looking for earnings of $0.32 per share for the quarter.

For fiscal 2023, Foot Locker now projects adjusted earnings in a range $1.30 to $1.40 per share on net sales decline of 8.0 to 8.5 percent, with comparable sales decline of 8.5 percent to 9 percent. The Street is looking for earnings of $1.28 per share.

Previously, the company expected adjusted earnings in the range $1.30 to $1.50 per share on net sales decline of 8 to 9 percent, with comparable sales decline of 9 to 10 percent.

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