Foot Locker (NYSE:FL) Releases Earnings Results, Misses Estimates By $0.32 EPS

Key Points

• Foot Locker reported a quarterly earnings per share (EPS) of ($0.27), significantly missing the consensus estimate of $0.05 by ($0.32), with a negative net margin of 4.54%.
• The company's stock has a market capitalization of $2.53 billion, with recent trading around $26.52 and a 52-week trading range between $11.00 and $33.21.
• Analyst ratings are mixed; two analysts rated the stock as a Buy, twelve as Hold, and two as Sell, with a consensus rating of "Hold" and an average price target of $21.20.

Foot Locker (NYSE:FL - Get Free Report) announced its quarterly earnings data on Wednesday. The athletic footwear retailer reported ($0.27) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.32), Zacks reports. The company had revenue of $1.86 billion during the quarter, compared to analysts' expectations of $1.87 billion. Foot Locker had a negative net margin of 4.90% and a positive return on equity of 2.92%. The business's quarterly revenue was down 2.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.05) EPS.

Foot Locker Stock Performance

FL traded down $0.35 during trading on Friday, hitting $24.72. 9,427,716 shares of the stock were exchanged, compared to its average volume of 5,146,818. The firm has a market capitalization of $2.36 billion, a P/E ratio of -6.13, a PEG ratio of 2.07 and a beta of 1.75. Foot Locker has a 1-year low of $11.00 and a 1-year high of $31.43. The stock has a fifty day moving average price of $25.18 and a two-hundred day moving average price of $20.08. The company has a quick ratio of 0.49, a current ratio of 1.59 and a debt-to-equity ratio of 0.17.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on FL shares. JPMorgan Chase & Co. upgraded Foot Locker from an "underweight" rating to a "neutral" rating and lifted their price objective for the company from $16.00 to $24.00 in a research note on Thursday, May 15th. Robert W. Baird lifted their price objective on Foot Locker from $24.00 to $26.00 and gave the company a "neutral" rating in a research note on Thursday. Morgan Stanley decreased their price objective on Foot Locker from $16.00 to $14.00 and set an "underweight" rating for the company in a research note on Tuesday, May 6th. Telsey Advisory Group reissued a "market perform" rating and set a $24.00 target price on shares of Foot Locker in a research report on Wednesday. Finally, Barclays lowered Foot Locker from an "overweight" rating to an "equal weight" rating in a research report on Thursday, May 29th. Two investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Foot Locker currently has an average rating of "Hold" and an average target price of $21.33.

Insider Buying and Selling

In other Foot Locker news, CAO Giovanna Cipriano sold 22,383 shares of Foot Locker stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $24.90, for a total transaction of $557,336.70. Following the transaction, the chief accounting officer owned 93,895 shares of the company's stock, valued at $2,337,985.50. The trade was a 19.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Brevan Howard Capital Management LP acquired a new position in Foot Locker during the second quarter worth approximately $236,000. Creative Planning acquired a new position in Foot Locker during the second quarter worth approximately $325,000. Hsbc Holdings PLC increased its position in Foot Locker by 12.3% during the second quarter. Hsbc Holdings PLC now owns 18,833 shares of the athletic footwear retailer's stock worth $462,000 after buying an additional 2,064 shares during the period. Quantinno Capital Management LP acquired a new position in Foot Locker during the second quarter worth approximately $675,000. Finally, State of Tennessee Department of Treasury increased its position in Foot Locker by 43.1% during the second quarter. State of Tennessee Department of Treasury now owns 28,640 shares of the athletic footwear retailer's stock worth $702,000 after buying an additional 8,625 shares during the period.

Foot Locker Company Profile

Foot Locker, Inc, through its subsidiaries, operates as a footwear and apparel retailer in North America, Europe, Australia, New Zealand, Asia, and the Middle East. Its brand portfolio includes Foot Locker, a brand comprising sneakers and apparel; Kids Foot Locker, which offers athletic footwear, apparel, and accessories for children; and Champs Sports that operates as a mall-based specialty athletic footwear and apparel retailer.