Foot Locker Q4 Highlights: Flat Sales, Earnings Beat, Focus On Resetting Business & More

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• Specialty athletic retailer Foot Locker Inc (NYSE: FL) reported a fourth-quarter FY22 sales decline of 0.30% year-on-year to $2.33 billion, beating the consensus of $2.15 billion.

• Adjusted EPS of $0.97 beat the analyst consensus of $0.51.

• Comparable store sales increased 4.2% versus last year.

• The gross margin contracted 290 basis points, driven mainly by higher markdowns on increased promotional activity across the industry.

• Selling, general and administrative expenses fell 0.7% Y/Y to $521 million.

• The operating margin was 2.5%, and operating income for the quarter declined 51% to $59 million.

• The company held $536 million in cash and equivalents as of January 28, 2023. Merchandise inventories were $1.6 billion, a 29.8% Y/Y increase.

• The Board of Directors declared a quarterly cash dividend on the company's common stock of $0.40 per share, payable on April 28, 2023, to shareholders of record on April 14, 2023.

• "We are entering 2023 with a focus on resetting the business – simplifying our operations and investing in our core banners and capabilities to position the Company for growth in 2024 and beyond,' said CEO Mary Dillon.

• Outlook: Foot Locker sees FY23 comparable sales change of down 3.5% - 5.5%.

• FL expects sales to be down 3.5% - 5.5%, including ~1% from the extra week.

• It expects Adjusted FY23 EPS of $3.35 - $3.65, versus the consensus of $4.48.

• Investor Day: The company has set long-term financial targets for fiscal years 2024 through 2026, with 5%- 6% total sales growth and low- to mid-twenties of adjusted EPS growth.

• Price Action: FL shares are trading higher by 1.16% at $42.75 in premarket on the last check Monday.

• Photo Via Company

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This article Foot Locker Q4 Highlights: Flat Sales, Earnings Beat, Focus On Resetting Business & More originally appeared on Benzinga.com

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