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Notable Runner: Foot Locker, Inc. (NYSE: FL)

On Friday, Shares of Foot Locker, Inc. (NYSE: FL) lost -16.65 percent to $58.72. During the day, the lowest price at which share is traded was $58.13 and hit the highest price at $61.40. The stock’s institutional ownership stands at 99.00 percent.

Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, declared recently financial results for its 1st– quarter finished April 29, 2017.

1st- Quarter Results:

Net income for the Company’s 1st- quarter finished April 29, 2017 was $180.00M, or $1.360 per share, contrast with net income of $191.00M, or $1.390 per share in the similar period of 2016.

1st- quarter comparable-store sales increased 0.50 percent.  Total sales increased 0.70 percent, to $2,001.00M this year, contrast with sales of $1,987.00M for the corresponding prior-year period.  Apart From the effect of foreign currency fluctuations, total sales for the 1st- quarter increased 1.80 percent.  The Company’s gross margin rate reduced to 34.00 percent of sales from 35.00 percent a year ago, and the selling, general, and administrative expense rate increased 30.00 basis points to 18.50 percent of sales.

“The 1st- quarter was one of our most profitable quarters ever, but it did fall short of our original expectations,” said Richard Johnson, Chairman of the Board and CEO.  “The slow start we practiced in February, which we believe was mostly because of the delay in income tax refunds, was unfortunately not completely offset by much stronger sales in March and April.  Nonetheless, we believe our banners remain at the center of a vibrant sneaker culture.  We are sure that our clients have not lost their wonderful appetite for athletic footwear and apparel and that our position in the industry is stronger than ever.”

Financial Position:

At April 29, 2017, the Company’s merchandise inventories were $1,279.00M, 1.50 percent above than at the end of the 1st- quarter last year.  Using constant currencies, inventory increased 2.80 percent.  The Company’s cash totaled $1,049.00M, while the debt on its balance sheet was $127.00M.  The Company spent $38.00M to repurchase 546.00 thousand shares throughout the quarter and paid a quarterly dividend of $0.310 per share.

“Our overall financial position remains very strong,” said Lauren Peters, Executive VP and CFO.  “In addition, the tight inventory discipline we have maintained over the last many years is serving us well now, because even with 1st- quarter sales that ran below expectations, we believe our inventory is still well positioned to drive enhanced top line results over the balance of the year.  At the similar time, we are aggressively reviewing and implementing chances to lesser costs as we work to achieve a mid-single digit EPS boost for the complete year.”

Store Base Update:

Throughout the 1st- quarter, the Company opened 30.00 new stores, remodeled or relocated 61.00 stores, and closed 39.00 stores.  As of April 29, 2017, the Company operated 3,354.00 stores in 23.00 countries in North America, Europe, Australia, and New Zealand.  In addition, 62.00 franchised Foot Locker stores were operating in the Middle East and South Korea, in addition to 15.00 franchised Runners Point stores in Germany.

The Company is hosting a live conference/discussion call at 9:00 a.m. (EDT) recently, May 19, 2017, to review these results and to talk about the outlook for the remainder of 2017, and comment on the status of its existing programs.  This conference/meeting call may be accessed live by dialing 1-800-749-1342 (U.S. and Canada) or +44 203-300-0091 (global), or via the investor Relations section of the Foot Locker, Inc.  Please sign in to the website 15 minutes before the call in order to register.  A replay of the call will be obtainable via webcast from the similar investor Relations section of the Foot Locker, Inc. website through June 2, 2017.

Technical Analysis:

FL has market value of $7.66 billion while its EPS was booked as $4.92 in the last 12 months. The stock has 131.50M shares outstanding. In the profitability analysis, the company has gross profit margin of 8.60 percent while net profit margin was 8.60 percent. Beta value of the company was 0.64; beta is used to measure riskiness of the security.

Analyst recommendation for this stock stands at 1.80.

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