MARKETS

Foot Locker’s stock dives after quarterly results beat expectations but full-year profit outlook missed

Shares of Foot Locker Inc.
FL,
+1.21%
took a 9.9% dive in premarket trading Wednesday, after the athletic shoe apparel retailer reported fiscal fourth-quarter results that beat expectations, helped by “full-price selling” during the holiday season, but provided a downbeat earnings outlook. The company swung to a net loss for quarter to Feb. 3 of $389 million, or $4.13 a share, from net income of $19 million, or 20 cents a share, in the year-ago period. Excluding nonrecurring items, such as charges related to investments and the settlement of pension obligations, adjusted earnings per share fell to 38 cents from 97 cents, but the FactSet consensus of 32 cents. Total revenue grew 2% to $2.38 billion, above the FactSet consensus of $2.28 billion, as same-store sales declined 0.7% to beat expectations of a 2.3% drop. For fiscal 2024, the company expects adjusted earnings per share of $1.50 to $1.70, below the FactSet consensus of $1.86. Total sales are expected to be down 1% to up 1%, while the current FactSet sales consensus of $8.03 billion implies a 1.7% decline. The stock has run up 21.4% over the past three months through Tuesday, while the S&P 500
SPX,
-1.02%
has gained 11.6%.

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