- Specialist dealer for sporting goods Footlocker Inc FL reported a fourth quarter FY22 revenue decline of 0.30% year-over-year to $2.33 billion, beating the consensus of $2.15 billion.
- Adjusted earnings per share of $0.97 beat analyst consensus of $0.51.
- Comparable store sales increased by 4.2% year-on-year.
- Gross margin contracted 290 basis points, primarily due to higher discounts due to increased advertising activity across the industry.
- SG&A expenses fell 0.7% year over year to $521 million.
- Operating margin was 2.5% and operating income for the quarter was down 51% to $59 million.
- The Company had $536 million in cash and cash equivalents as of January 28, 2023. Inventories were $1.6 billion, up 29.8% year over year.
- The Board of Directors declared a quarterly cash dividend on the Company’s common stock of $0.40 per share, payable on April 28, 2023 to shareholders of record on April 14, 2023.
- “We enter 2023 with a focus on realigning the business – simplifying our operations and investing in our core banners and capabilities to position the business for growth in 2024 and beyond,” said CEO Mary Dillon.
- Outlook: foot cabinet sees a comparable revenue change of 3.5% to 5.5% for FY23.
- FL expects revenue to decline 3.5% to 5.5%, including ~1% from the extra week.
- Adjusted earnings per share for FY23 are expected to be in the range of $3.35 to $3.65 versus consensus of $4.48.
- Investor Day: The company has set long-term financial targets for fiscal years 2024 through 2026 of total revenue growth of 5% to 6% and adjusted EPS growth in the low to mid 20’s.
- Price promotion: FL shares are trading up 1.16% at $42.75 premarket on the latest check Monday.
- Photo via company
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