Foot Locker (NYSE:FL) Trading Down 5.9% Following Weak Earnings

Key Points

• Foot Locker's shares dropped 5.9% following the announcement of weaker-than-expected quarterly earnings, with earnings per share at ($0.27), falling short of the consensus estimate of $0.05.
• The company's revenue for the quarter was $1.86 billion, down 2.3% compared to the same quarter last year, and also below the consensus estimate of $1.87 billion.
• Several analysts have adjusted their ratings on Foot Locker, with a consensus rating of "Hold" and an average target price of $21.20.

Foot Locker, Inc. (NYSE:FL - Get Free Report) shares fell 5.9% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $25.69 and last traded at $24.91. 1,836,690 shares were traded during mid-day trading, a decline of 60% from the average session volume of 4,626,766 shares. The stock had previously closed at $26.47.

The athletic footwear retailer reported ($0.27) earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.32). Foot Locker had a negative net margin of 4.54% and a positive return on equity of 3.65%. The company had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.87 billion. During the same quarter in the previous year, the business earned ($0.05) earnings per share. Foot Locker's revenue was down 2.3% compared to the same quarter last year.

Analyst Ratings Changes

Several equities research analysts recently commented on FL shares. Citigroup increased their price objective on Foot Locker from $20.00 to $24.00 and gave the company a "neutral" rating in a research report on Friday, May 16th. Robert W. Baird set a $24.00 price objective on Foot Locker in a research report on Thursday, May 29th. Morgan Stanley lowered their price objective on Foot Locker from $16.00 to $14.00 and set an "underweight" rating on the stock in a research report on Tuesday, May 6th. Barclays cut Foot Locker from an "overweight" rating to an "equal weight" rating in a research report on Thursday, May 29th. Finally, Zacks Research raised Foot Locker from a "strong sell" rating to a "hold" rating in a research report on Monday, August 18th. Two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $21.20.

Insiders Place Their Bets

In related news, CAO Giovanna Cipriano sold 22,383 shares of the firm's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $24.90, for a total transaction of $557,336.70. Following the sale, the chief accounting officer owned 93,895 shares of the company's stock, valued at $2,337,985.50. This trade represents a 19.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.89% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Foot Locker

A number of institutional investors have recently added to or reduced their stakes in the stock. Envestnet Asset Management Inc. raised its stake in Foot Locker by 11.6% in the fourth quarter. Envestnet Asset Management Inc. now owns 19,426 shares of the athletic footwear retailer's stock valued at $423,000 after buying an additional 2,026 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in Foot Locker in the fourth quarter valued at about $1,619,000. Mariner LLC raised its stake in Foot Locker by 12.2% in the fourth quarter. Mariner LLC now owns 29,851 shares of the athletic footwear retailer's stock valued at $650,000 after buying an additional 3,242 shares during the last quarter. MetLife Investment Management LLC raised its stake in Foot Locker by 5.9% in the fourth quarter. MetLife Investment Management LLC now owns 50,919 shares of the athletic footwear retailer's stock valued at $1,108,000 after buying an additional 2,824 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in Foot Locker by 9.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 62,216 shares of the athletic footwear retailer's stock valued at $1,354,000 after buying an additional 5,593 shares during the last quarter.

Foot Locker Stock Performance

The business has a 50 day simple moving average of $25.14 and a 200 day simple moving average of $19.99. The company has a quick ratio of 0.49, a current ratio of 1.64 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $2.39 billion, a PE ratio of -6.58, a PEG ratio of 2.21 and a beta of 1.75.

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.

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