Foot Locker (FL, $44.00) shares fall -16%, as earnings and revenue lag behind expectations

Foot Locker shares stumbled, following the company’s disappointing fiscal first quarter results.

 The sportswear & footwear retailer’s adjusted earnings for the quarter came in at $1.53 per share, lagging behind analysts’ estimates of $1.60 per share. 

Revenue increased +2.5% year-over-year to $2.08 billion, but missed analysts’ expectations of $2.11 billion.  Comparable-store sales climbed +4.6% in the quarter, falling behind the expected +5.2%.

Foot Locker spent $1.8 million to buy back 32,100 shares during the quarter, an amount lower than what  analysts expected. According to the company, it now expects its earnings per share growth to be at “high-single digits” for the year, versus double-digit growth.

The shoe industry is apparently facing the heat from US President Donald Trump’s 25% tariff threat on imported footwear (among other items) from China. Foot Locker, along with more than 170 shoe retailers, including Nike and Under Armour, have written a letter to Trump, urging him to consider suspending such tariffs plans.

Foot Locker shares plunged -16% during in morning Friday.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.