Key points:
- The Foot Locker stock price soared 22.3% on upbeat earnings
- The sports company’s earnings were better than analysts’ expectations
- The firm also announced the appointment of a new CEO
The Foot Locker, Inc. (NYSE: FL) stock price soared 22.3% after announcing its Q2 earnings earlier today. The sports and sneakers company generated revenues worth $2.07 billion compared to the $2.28 billion generated last year but met analysts’ expectations.
The sneaker company’s earnings per share were $0.99, based on net earnings of $94 million versus the $430 million it earned last year, which translated into $4.09 per share. The firm’s adjusted earnings per share were $1.10 versus 2021’s $2.09 per share.
Investors reacted positively to Foot Locker’s earnings results since they were better than analysts’ consensus estimates. According to data from Factset, analysts expected the sports company to report earnings per share of $0.80. The analysts expected the company’s same-store sales to fall by 14.6%, but the firm reported a 10.3% decline in the same metric.
Foot Locker also announced that it had appointed Mary Dillon, the former CEO of Ulta Beauty, effective September 1, 2022.
Richard Johnson, Foot Locker’s current CEO, said: “Despite an increasingly challenging macroeconomic backdrop, we delivered a solid quarter against the favorable fiscal stimulus and the promotional environment from last year,”
Adding:
“Driven by strong execution from our team and ongoing progress against our key objectives, we grew our sales 16.4% above levels from 2019.”
Investors were pleased with Foot Loker’s financial performance and seemed to have taken the leadership transition in stride, given the rally in Foot Locker’s share price.
Foot Locker also announced a partnership with Fanatics, a global digital sports platform, to increase the variety of officially-licensed fan gear and merchandise available online to Foot Locker shoppers.
Mary Dillon, the incoming CEO, said: “I am thrilled to be joining Foot Locker, an iconic company that possesses a strong set of values and focus on the customer experience as well as tremendous growth opportunities,”
Adding:
“It is clear how Foot Locker sits at the heart of the global sport and sneaker community, and I am excited to become part of the Company’s team.”
Foot Locker shares have fallen 26.9% in 2022, but today’s rally recoups most of these losses.
*This is not investment advice. Always do your due diligence before making investment decisions.
Foot Locker stock price.
The Foot Locker stock price soared 22.26% to trade at $38.49, rising from Thursday’s closing price of $31.98.