Foot Locker (NYSE:FL) Trading Down 5.9% After Earnings Miss

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.

Shares of Foot Locker, Inc. (NYSE:FL - Get Free Report) traded down 5.9% during trading 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 changed hands during 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 analysts' consensus estimates of $0.05 by ($0.32). Foot Locker had a negative net margin of 4.90% and a positive return on equity of 2.92%. The company had revenue of $1.86 billion during the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the previous year, the business posted ($0.05) earnings per share. The company's revenue for the quarter was down 2.3% on a year-over-year basis.

Analysts Set New Price Targets

A number of equities research analysts have commented on FL shares. Gordon Haskett cut shares of Foot Locker from a "moderate buy" rating to a "hold" rating in a report on Thursday, May 15th. JPMorgan Chase & Co. upgraded shares of Foot Locker from an "underweight" rating to a "neutral" rating and raised their price target for the stock from $16.00 to $24.00 in a report on Thursday, May 15th. Citigroup raised their price target on shares of Foot Locker from $20.00 to $24.00 and gave the stock a "neutral" rating in a report on Friday, May 16th. Barclays cut shares of Foot Locker from an "overweight" rating to an "equal weight" rating in a report on Thursday, May 29th. Finally, Telsey Advisory Group restated a "market perform" rating and issued a $24.00 price target on shares of Foot Locker in a report on Wednesday, August 27th. Two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $21.33.

Insider Buying and Selling at Foot Locker

In other Foot Locker news, CAO Giovanna Cipriano sold 22,383 shares of Foot Locker stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $24.90, for a total value of $557,336.70. Following the sale, the chief accounting officer owned 93,895 shares of the company's stock, valued at approximately $2,337,985.50. The trade was a 19.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 1.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Foot Locker

Large investors have recently modified their holdings of the business. Envestnet Asset Management Inc. grew its stake in Foot Locker by 11.6% in the 4th quarter. Envestnet Asset Management Inc. now owns 19,426 shares of the athletic footwear retailer's stock worth $423,000 after buying an additional 2,026 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in Foot Locker by 9.9% during the 4th 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 period. Northern Trust Corp boosted its position in Foot Locker by 9.1% during the 4th quarter. Northern Trust Corp now owns 982,740 shares of the athletic footwear retailer's stock valued at $21,384,000 after buying an additional 81,735 shares during the period. AXA S.A. boosted its position in Foot Locker by 204.0% during the 4th quarter. AXA S.A. now owns 64,027 shares of the athletic footwear retailer's stock valued at $1,393,000 after buying an additional 42,964 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in Foot Locker by 66.5% during the 4th quarter. Ameriprise Financial Inc. now owns 541,659 shares of the athletic footwear retailer's stock valued at $11,786,000 after buying an additional 216,352 shares during the period.

Foot Locker Stock Down 2.4%

The firm has a market cap of $2.30 billion, a PE ratio of -5.98, a PEG ratio of 2.23 and a beta of 1.79. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.45 and a current ratio of 1.59. The company's 50-day simple moving average is $25.19 and its two-hundred day simple moving average is $20.11.

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.