Categories Earnings, Retail

Foot Locker Q4 2017 earnings snapshot

Athletic footwear and apparel retailer Foot Locker (FL) reported a loss of $49 million in the fourth quarter. The company’s bottom line was hurt by the recent tax reforms and the ongoing pension-related litigation costs. However, sales rose 5% to $2.2 billion.

Same-store sales continued its negative growth from the third quarter, nosediving 3.7%. Gross margins reduced more than 200 basis points to 31.4% in the quarter due to heavy markdowns announced during the holiday season along with increase in expenses.

Foot Locker Q4 2017 earnings results

The silver lining in the quarter was the reduction in inventories. At the end of the quarter, inventories reduced 2.2% compared to the prior-year period. Old inventory cleanup is expected to augur well for the firm in 2018 as it can sell now products which are in great demand in line with customer expectations.

Dividends

During the quarter, Foot Locker paid dividends of $0.31 per share to shareholders and repurchased $105 million worth of common stock. For the fiscal 2018, the footwear retailer increased its quarterly dividend payout to $0.345 per share.

Outlook

For fiscal 2018, same-store sales are expected to be flat to up low-single digits. Due to the investments on the digital side of the business, SG&A expenses would increase 100 basis points in 2018.

Also Read:  Perrigo Company (PRGO): Q3 2019 Earnings Snapshot

Most Popular

Levi Strauss (LEVI) Q1 profit beats estimates, withdraws annual outlook

Levi Strauss & Co. (NYSE: LEVI) reported a 4% increase in earnings for the first quarter of 2020 helped by lower income tax expenses despite a rise in operating expenses.

Vail Resorts (MTN) can reward investors once it gets past market crisis

The recent travel restrictions have taken a heavy toll on the tourism industry, leaving almost all destinations deserted. Vail Resorts Inc. (NYSE: MTN), a leading operator of mountain ski resorts,

The coming months will prove to be a testing time for Boeing (BA)

Shares of Boeing Co. (NYSE: BA) were up 13% in afternoon hours on Monday. The stock is down 63% from its 52-week high of $391. As the aviation industry suffers

Tags

Top