FL
Foot Locker Inc
Q3 2024 Report
Foot Locker Inc (FL) Q3 2024 Financial Results: Cautious Outlook Amid Positive Comp Trends...
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Executive Summary
Foot Locker Inc. (FL) reported a notable change in momentum during Q2 2024, marking a return to positive total and comparable sales growth, with reported comp growth of 2.6%, surpassing initial projections of a flat to slightly positive result. The company’s strategic focus, under its Lace Up Plan, is beginning to yield impactful results as evidenced by a gross margin expansion of 50 basis points year-over-year. However, management acknowledged continued pressures from global economic conditions and inflation, particularly affecting their WSS banner. Net income showed a loss of $12 million for the quarter, with non-GAAP EPS at a loss of $0.05, impacted by the non-recurring FLX rewards program costs. Management expressed confidence in the company's trajectory, maintaining its full-year guidance for non-GAAP EPS between $1.50 and $1.70, indicative of an encouraging outlook for Q3 and beyond.
Key Performance Indicators
Revenue
1.90B
QoQ: 0.00% | YoY:-20.30%
Gross Profit
476.00M
25.05% margin
QoQ: 10.71% | YoY:-10.22%
Net Income
-12.00M
QoQ: 0.00% | YoY:-96.92%
EPS
-0.13
QoQ: 0.00% | YoY:-96.85%
Revenue Trend
Margin Analysis
Key Insights
- Total Revenue: $1.90 billion, essentially flat YoY.
- Comparable Store Sales (Comp): +2.6%.
- Gross Profit: $476 million, contributing to a gross margin ratio of 27.6%, up 50 basis points YoY.
- Operating Income: Loss of $14 million, influenced by ongoing strategic investments and the $11 million non-recurring FLX impact.
- Net Income: Loss of $12 million, with an EPS of -$0.13 (adjusted to a loss of -$0.05 on a non-GAAP basis).