Shares of Foot Locker were on the rise after the athletic footwear retailer exceeded expectations for quarterly earnings and sales. The company's adjusted earnings for the third quarter came in at 30 cents per share, surpassing Wall Street's forecast of 21 cents per share. In comparison, it had reported earnings of $1.27 per share during the same period last year.
Although same-store sales dropped by 8%, which the company attributed to ongoing consumer softness, a changing vendor mix, and the repositioning of Champs Sports, actual sales of $1.99 billion beat expectations of $1.96 billion. Analysts had anticipated a sales decline of 9.7%.
Looking ahead, Foot Locker narrowed its guidance for the fiscal year ending February 3, 2024. The company now expects same-store sales to decline between 8.5% and 9%, compared to the previous range of 9% to 10%. Additionally, it forecasts adjusted earnings per share in the range of $1.30 to $1.40, as opposed to the earlier projection of $1.30 to $1.50. Analysts had predicted a 9.8% decline in same-store sales and adjusted earnings of $1.27.
Foot Locker's President and CEO, Mary Dillon, expressed excitement about the company's partnership with the NBA as an official league marketing partner in the United States. Dillon also stated her enthusiasm for wrapping up the current year and building on their progress in 2024 and beyond.
Following the positive news, shares of Foot Locker jumped by 9.1% to $26.01 in premarket trading. Despite this increase, the stock has experienced a 37% drop throughout the year.
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