Foot Locker Slashes FY23 Outlook As Q3 Results Miss Estimates; Stock Down 23%

(RTTNews) - Specialty athletic retailer Foot Locker, Inc. (FL) reported Friday a first-quarter net income of $36 million or $038 per share, sharply lower than $133 million or $1.37 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $0.70 per share, compared to $1.60 per share in the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.81 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the quarter declined 11.4 percent to $1.93 billion from $2.18 billion in the same quarter last year. Excluding the effect of foreign exchange rate fluctuations, total sales declined 10.0 percent. Comparable-store sales decreased 9.1 percent. The Street was looking for revenues of $1.99 billion for the quarter.

Looking ahead to fiscal 2023, the company now projects adjusted earnings in a range $2.00 to $2.25 per share on net sales decline of 6.5 to 8.0 percent, with Comparable sales decline of 7.5 to 9.0 percent. Previously, the company expected adjusted earnings in the range $3.35 to $3.65 per share on net sales decline of 3.5 to 5.5 percent, with Comparable sales decline of 3.5 to 5.5 percent.

The Street is looking for earnings of $3.46 per share on net sales decline of 4.6 percent to $8.36 billion for the year.

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

Additionally, the company announced the appointment of Mike Baughn as Executive Vice President and Chief Financial Officer, effective June 12, 2023. Baughn joins the company from Kohl's Corporation where he most recently served as?Executive Vice President of Finance and Treasurer.

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