5 Reasons Foot Locker Stock Dropped to a 52-Week Low
- A top- and bottom-line miss Foot Locker's total revenue declined 0.4% annually to $1.77 billion, which missed...
- Decelerating comps growth
Why did Foot Locker stock drop 30% on Friday?
Shares of Foot Locker ( FL -0.31% ) plunged 30% on Friday after the athletic apparel and footwear retailer warned of a sales decline in the coming year. Foot Locker's sales rose 6.9% year over year to $2.3 billion in its fiscal 2021 fourth quarter, which ended on Jan. 29.
Who are the analysts that downgraded Foot Locker stock?
The Foot Locker Analysts: Seaport Research analyst Mitch Kummetz lowered the rating from Buy to Neutral and has no price target on the stock. Morgan Stanley analyst Kimberly Greenberger lowered the rating on Foot Locker from Equal-weight to Underweight and cut the price target from $47 to $23.
Why did Foot Locker's net income fall 16%?
Foot Locker's net income, however, declined by 16% to $103 million, or $1.02 per share, because of higher costs and restructuring charges. More worrisome was Foot Locker's forecast for fiscal 2022.
Will Foot Locker's sales continue to fall in 2022?
In turn, Foot Locker expects its sales to fall by as much as 6% in 2022. Its brick-and-mortar stores are projected to endure the brunt of that decline, with comparable sales down as much as 10%.
What is happening to Foot Locker?
Foot Locker shares sink after retailer says 2022 sales will fall as it expects to sell fewer Nike products. Foot Locker projects revenue to drop in 2022 as it anticipates it will no longer be able to sell as many products from its top vendor, Nike.
Why is Nike removing from Foot Locker?
While customers may see a slightly smaller selection of shoes brandishing the “swoosh” in coming months, a Foot Locker representative told Nexstar that Nikes are not going to disappear from stores. In 2021, Nike made up approximately 65% of total Foot Locker spending and 70% of total sales.
Is Nike dropping Foot Locker?
Contributing writer. On Monday, Nike's executive leadership discussed the future of its wholesale and direct-to-consumer business on the company's earnings call for the third quarter of the 2022 fiscal year.
Is Foot Locker a buy or sell?
Valuation metrics show that Foot Locker, Inc. may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of FL, demonstrate its potential to outperform the market.
Why did Foot Locker stop selling Jordans?
This sparked a riff between the two brands, and Foot Locker's desire to sell less-expensive sneakers caused Nike to cut the retailer off from its marquee footwear releases. It even refused to stock Foot Locker with the Air Jordan IXs, which retroed in 2002.
Is Jordan owned by Nike?
Air Jordan is a line of basketball shoes and athletic clothing produced by American corporation Nike....Air Jordan.The silhouette of Michael Jordan served as inspiration to create the "Jumpman" logo.Product typeBasketball Shoes, ClothingOwnerNikeCountryUnited StatesIntroducedNovember 17, 19842 more rows
How do Foot Locker drops work?
Grabbing the newest sneaker release is easier than ever: Choose up to 3 stores carrying the release in the app. Head to your store and pay for the release in person when it drops.
Will Foot Locker stock go up?
Stock Price Forecast The 20 analysts offering 12-month price forecasts for Foot Locker Inc have a median target of 32.00, with a high estimate of 50.00 and a low estimate of 23.00. The median estimate represents a +11.50% increase from the last price of 28.70.
Should you buy Foot Locker stock?
There are currently 5 sell ratings, 12 hold ratings and 4 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "hold" Foot Locker stock.
Is Foot Locker good long term investment?
Impressive earnings Apart from the disappointing news about Nike, Foot Locker actually showed good promise in its most recent earnings report. A non-GAAP EPS of $1.67 means a decent 7.7% growth year-over-year. This also beat analysts' estimates of $1.43.
What happened
Shares of Foot Locker ( FL -29.80% ) plunged 30% on Friday after the athletic apparel and footwear retailer warned of a sales decline in the coming year.
So what
Foot Locker's sales rose 6.9% year over year to $2.3 billion in its fiscal 2021 fourth quarter, which ended on Jan. 29. The company's recent purchases of retailers WSS and atmos contributed to the gains.
Now what
More worrisome was Foot Locker's forecast for fiscal 2022. The company said that no single vendor would account for 60% of its sales in the coming year, down from 70% in 2021.
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How much did Foot Locker lose?
Foot Locker's total revenue declined 0.4% annually to $1.77 billion, which missed expectations by $60 million. Its adjusted net income fell 18% to $60 million, while its adjusted EPS slid 12% to $0.66, which missed estimates by a penny.
Does Foot Locker have a competition?
Foot Locker didn't mention the competition, but the growth of Nike and Adidas' DTC channels also likely throttled its growth. Nike's Direct revenue surged 16% annually (in constant currency terms) to $11.8 billion last quarter, buoyed by a 35% jump in its e-commerce sales and 6% comps growth at its stores.
What happened
Shares of Foot Locker ( FL -29.80% ) were down 15.9% as of 11:30 a.m. EDT Friday after the footwear retailer announced disappointing first-quarter 2019 results.
Now what
Foot Locker also said it's "on track" to meet its full-year outlook, provided during last quarter's call in March, which suggested 2019 comparable-store sales growth in the mid-single-digit percent range, and double-digit percent growth in earnings per share.
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What happened
Shares of Foot Locker (NYSE: FL) plunged 30% on Friday after the athletic apparel and footwear retailer warned of a sales decline in the coming year.
So what
Foot Locker's sales rose 6.9% year over year to $2.3 billion in its fiscal 2021 fourth quarter, which ended on Jan. 29. The company's recent purchases of retailers WSS and atmos contributed to the gains.
Now what
More worrisome was Foot Locker's forecast for fiscal 2022. The company said that no single vendor would account for 60% of its sales in the coming year, down from 70% in 2021.
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Shares of the footwear retailer fell as the coronavirus outbreak forced its stores to close
Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. Follow @tmfbowman
What happened
Shares of Foot Locker ( NYSE:FL) were sliding along with much of the apparel retail industry as the consumer discretionary sector got crushed by the coronavirus pandemic.
So what
Like much of the apparel sector, Foot Locker shares drifted south last month as Americans' shopping patterns changed significantly, with consumers stocking up on essentials like food, medicine, and cleaning supplies, and forgoing purchases of apparel and other discretionary items.
Now what
Foot Locker shares recovered some of their losses at the end of March on hopes for the federal government's rescue package. But April looks like it will be another tough month. The epidemic shows no signs of slowing down at the moment, and the stock has already fallen 17% through the first three days of April.
