Foot Locker’s stock tanks as Q1 results miss estimates

Shares of specialty athletic retailer Foot Locker Inc. (NYSE: FL) slid over 6% during premarket hours on Friday after the company missed analysts’ estimates on revenue and earnings for the first quarter of 2019.  

Total sales of $2.07 billion were up 2.6% compared to the same period last year. Excluding the impact of foreign exchange, sales grew 4.7%. Comparable-store sales increased 4.6% during the quarter.

GAAP net income improved to $172 million, or $1.52 per share, from $165 million, or $1.38 per share, in the prior-year period. Adjusted EPS was $1.53.

At quarter-end, merchandise inventories totaled $1.21 billion, up 0.1% from the prior-year period. In constant currency, inventory growth was 1.7%.

During the first quarter, Foot Locker opened 14 new stores, remodeled or relocated 13 stores, and closed 34 stores. As of May 4, 2019, the company operated 3,201 stores in 27 countries in North America, Europe, Asia, Australia, and New Zealand. There were also 119 franchised Foot Locker stores operating in the Middle East, as well as 10 franchised Runners Point stores in Germany. 

Foot Locker expects full-year 2019 EPS to be up high-single digits based on the share repurchase activity to date.

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