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Foot Locker Faces Investor Skepticism as Profit Outlook DipsFoot Locker ( NYSE:FL ) finds itself in the spotlight as shares plummet by approximately 29% following the retailer's announcement of a profit outlook below Wall Street expectations for 2024. The dramatic drop in share price reflects investor concerns over the company's planned investments aimed at bolstering demand, which are projected to weigh on profit margins in the near term. Despite a solid holiday quarter, Foot Locker's ( NYSE:FL ) decision to ramp up investments across its business has cast doubt on the timeline for achieving its long-term profit margin targets. Disappointingly, the retailer now anticipates reaching its margin goals two years later than previously expected, further dampening investor sentiment and dashing hopes of a swift recovery in profitability. Foot Locker's ( NYSE:FL ) "Lace Up" strategy, initiated in March last year, has yielded some positive results, notably in improving the digital business and driving full-price sales. However, the need to clear out excess inventory through markdowns has placed additional strain on profit margins, exacerbating the impact of planned investments on the bottom line. Chief Financial Officer Mike Baughn's announcement of another year of significant investment in 2024, coupled with the decision to forgo resuming dividends, underscores the company's commitment to long-term growth initiatives. However, the prospect of lower discounts and ongoing margin pressure in the first quarter poses challenges in managing consumer expectations and sustaining demand. Analysts, including Zachary Warring from CFRA Research, have expressed skepticism about Foot Locker's ability to deliver consistent top and bottom-line growth in the evolving retail landscape. Warring's downgrade of the stock's rating to "strong sell" highlights the prevailing concerns among investors regarding the company's strategic direction and execution capabilities. Despite these challenges, Foot Locker ( NYSE:FL ) remains optimistic about the resilience of sneaker demand, fueled by steady interest in popular brands like Nike, Adidas, and New Balance. Projections for full-year same-store sales growth above market estimates signal potential opportunities for the retailer to capitalize on consumer preferences and drive revenue growth amidst a challenging operating environment. As Foot Locker ( NYSE:FL ) navigates the complexities of the retail landscape and charts a course towards sustainable profitability, investor confidence hangs in the balance. The company's ability to effectively execute its growth strategy and adapt to changing consumer dynamics will be critical in shaping its future trajectory and regaining investor trust in the long run.
NYSE:FLShort
by DEXWireNews
Foot Locker Shares Jump More Than 15% After Earnings BeatKey Takeaway 1. Foot Locker beat third-quarter earnings and sales expectations. 2. The shoe and apparel retailer said it expects better same-stores sales this year than it previously did. 3. Foot Locker has been hit by customers dealing with inflation and Nike’s focus on direct sales. Shares of Foot Locker rose today in premarket trading after the company posted surprise earnings and sales beats and said it saw strong results over the Thanksgiving weekend. The sneaker and sportswear retailer narrowed its full-year forecast, reflecting slightly better sales trends. It said it now expects sales to drop by 8% to 8.5% for the year, compared with a previously issued forecast of an 8% to 9% decrease. It projects a same-store sales decline of 8.5% to 9%, compared with its previous guidance of a 9% to 10% drop. Yet Foot Locker lowered the high end of its adjusted earnings guidance, dropping the range to $1.30 to $1.40 per share, down from the previous $1.30 to $1.50 per share. Here’s how Foot Locker did in the three-month period that ended Oct. 28 compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv: i. Earnings per share: 30 cents adjusted vs. 21 cents expected ii. Revenue: $1.99 billion vs. $1.96 billion expected In the fiscal third quarter, Foot Locker reported net income of $28 million, or 30 cents per share, compared with $96 million, or $1.01 in the year-ago period. Total revenue fell about 8.6% from $2.18 billion in the year-ago period. Foot Locker’s same-store sales fell 8% year over year, which the company said reflected “ongoing consumer softness,” a change in its mix of vendors and a 3% negative impact as it closes some Champs stores. Even so, that was slightly better than the 9.7% drop that analysts expected, according to FactSet. Digital sales fell by 5.6% year over year, Chief Commercial Officer Frank Bracken said on the company’s earnings call. Yet excluding Eastbay, a digital brand that the company wound down last year, digital sales rose 0.4%. Like many retailers, Foot Locker has gotten hurt by shoppers cutting back on discretionary spending as inflation forces them to spend more on food, housing and everyday needs and as experiences, rather than goods, become a priority. Foot Locker has also faced company-specific troubles, such as having some stores in struggling malls and leaning heavily on merchandise from Nike, a brand that’s making a bigger push to sell directly through its own stores and website. Too much inventory has also been a problem for Foot Locker, particularly as shoppers watch their spending. At the end of the third quarter, the retailer’s inventory was 10.5% higher than at the end of the year-ago period. Foot Locker said about 6% of that was strategic, as the company stocked up on merchandise to sell during the holiday season. On Wednesday, Foot Locker said it will enter a new market, India, next year. It said it has struck a long-term licensing agreement with two operators in India, Metro Brands Ltd., one of India’s largest footwear and accessories specialty retailers, and Nykaa Fashion, an e-commerce retailer. Those two companies will have exclusive rights to own and operate Foot Locker stores and sell its merchandise online in India. As of Tuesday’s close, shares of Foot Locker had tumbled by about 37% this year. That compares with the approximately 19% gains of the S&P 500 during the same period. Foot Locker’s stock closed at $23.84 on Tuesday, bringing its market value to $2.25 billion. Technical Analysist
NYSE:FLLong
by DEXWireNews
Foot Locker to stall at current swing high?Foot Locker - 30d expiry - We look to Sell at 46.97 (stop at 49.97) Trading has been mixed and volatile. 47 continues to hold back the bulls. 47.22 has been pivotal. Bespoke resistance is located at 47. Preferred trade is to sell into rallies. The medium term bias is neutral. Our profit targets will be 40.02 and 39.02 Resistance: 42.06 / 43.00 / 45.00 Support: 40.00 / 39.00 / 36.68 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NYSE:FLShort
by VantageMarkets
Footlocker to find support at previous resistance?Foot Locker - 30d expiry - We look to Buy at 40.22 (stop at 37.96) Daily signals are bullish. Previous resistance, now becomes support at 40. 50 4hour EMA is at 40.43. Preferred trade is to buy on dips. A later spike higher was met with further selling interest and prices settled lower to post a negative day. A lower correction is expected. Our profit targets will be 45.88 and 46.88 Resistance: 45.70 / 47.22 / 50.00 Support: 43.62 / 42.40 / 40.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NYSE:FLLong
by VantageMarkets
$FL: Everything lining up for a big move up$FL has a nice setup in basically every timeframe here, which suggests it could make a major move to the upside from here after next week. If it were to fall below $37 this setup would be invalidated for the most part, so watch out for that. Pays a 4% dividend, has an 11% earnings yield, and 0.42 price to sales ratio, with very low debt and actually producing EPS growth this year, it doesn't get much cheaper than this for a stock with potential upside. Definitely worth a shot here. Best of luck! Cheers, Ivan Labrie.
NYSE:FLLong
by IvanLabrie
Footlocker (FL) - Multiple tops - ShortOn this chart (1d timeframe), we can see multiple tops have appeared. Multiple tops is a bearish pattern so it's likely the price will drop. Also, there is a gap to be filled. Once the price has gone beneath the support line the trade can be entered. The price will find support in the support area, this would be the area where the profits can be taken. When it reaches the support area we expect a small bounce before it continues going down. See further details on the chart. Goodluck
NYSE:FLShort
by vf_investment
4
Footlocker - Stomping lower?Foot Locker - Medium Term - We look to Sell at 38.81 (stop at 40.86) Trading within a Bearish Channel formation. Price action continued to range between key support & resistance (30.02 - 40.00) although we expect a break of this range soon. Short term momentum is bearish. Preferred trade is to sell into rallies. Our profit targets will be 30.34 and 24.10 Resistance: 38.81 / 40.20 / 45.59 Support: 37.88 / 33.19 / 30.02 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NYSE:FLShort
by VantageMarkets
FL: Correction due?Foot Locker Short Term - We look to Sell a break of 37.95 (stop at 42.06) This stock has recently been in the news headlines. We are trading at overbought extremes. A lower correction is expected. A break of 38.00 is needed to confirm follow through negative momentum. Further downside is expected. Our profit targets will be 28.32 and 24.00 Resistance: 42.00 / 48.00 / 58.00 Support: 28.00 / 24.00 / 18.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’) . Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NYSE:FLShort
by VantageMarkets
Lock it in, Foot Locker. FLBullish outlook for gains at 44.10, then 46.62 and 48.92. Invalidation at 36.19. We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in green with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
NYSE:FLLong
by Rykin_Capital
Why I am still holding Foot LockerHey everyone and welcome, We are already up 40% on Foot Locker ! So why am I not selling yet ? We can see on the graph that Footlocker has recovered to a pre covid price. What is interesting though is that in 2019 Q3 the stock price was around 40$ with a profit of 125 Million. Now look at the stockprice in 2020 Q3, the stock price is around 40 with a proft of 265 Million !!! I post more often on my broker. Feel free to follow me there or copy me :) www.etoro.com
NYSE:FLLong
by Samboly
FL - Reversal towards earnings ?Hello Everyone! Looking at the daily chart of Foot Locker it is quite interesting to spot the divergence between price and RSI once it reached the upper Bollinger Band and the previous bounce of the price off its 100 sma. Considering that FL has recovered almost all have been lost during the pandemic, and earnings are coming on 20th November, it seems there is plenty of time for the divergence to take place pushing the price down to its 100 moving average or close to that, perhaps in coincidence with Fibo retracement of 38,2%. Unless earnings will bring a negative surprise, prepare for another bounce... Thanks for reading and leave a comment if you like to do that and....may the market be with us!
NYSE:FL
by Carlopiranha
2
FL - 8.46% Potential Profit - Bullish PennantThis week we need to play conservative and take home whatever we can. Targets are moderate and realistic, and I aim to close positions fast, often before the end of the day. Allocate less than usual capital if you would like an extra layer of safety. The market is uncertain and we want to keep our risk to the minimum. About Entry / Exit, I have two options, based on how the market opens. A Limit or a Stop buy - Stop Losses change accordingly. - 6-month Uptrend - RSI + Stoch above 50 - MACD above Signal Suggested Entry $32.19 (Limit) or $32.87 (Stop) Suggested Stop Loss $31.46 (if you enter Limit) or $32.26 (if you enter Stop) Target price $34.97 About me - August P/L: +203.83% | Wins 85.19% | No Trades without Analysis - Note that I tend to adjust stop losses in order to secure profits early and preserve capital. This means that the target price is going to be achieved as long as there are no strong pullbacks that trigger my new adjusted stop loss.
NYSE:FLLong
by maschera
FL Bearish Pennant Ok first of all no comments on the Van Gogh li,e drawing please.Its late and I’m no,good at graphs. But I gave no doubt that FL is set up perfectly for bearish pennant with exit price price around 25-28. I will be opening 100 SEP 20 31. If you look at this strike price you will see OI of over 11000 so thinking someone know,something. In terms of Pennant look at form and also look at massive volume drop off over last few days. Don’t know when will happen but will be before September 20
NYSE:FLShort
by grubby1220
FOOTLOCKER LONG INTO EARNINGSWe have here a retailer with a P/E AND P/S that puts the rest of the market to shame. We HAVE to ask ourselves when do the value investors step in? I believe that question will be answered on AUG.23rd on the back of this companies earnings. They lowered expectations and with 60% of their sales coming from Nike and with Nike beating earnings this is a good bet. I see a 17% upside on the back of good earnings. Stop loss at 36, Take profit at 47. Good luck.
NYSE:FLLong
by cryptorichhh
Foot Locker got its Ass kicked but might be soon ready to runn Foot Locker got to feel a beat up and an overal market over reaction for stocks that missed earnings, even if it missed tiny. The stock dropped more than 30% in two weeks and we are getting close to an open gap at around 32$ with a nice trend line support. In this enviroment the markets react multiple times stronger than usual, so we still need to be carefull and invest small. Only my oppinion so make your own research. May the markets be with you
NYSE:FLLong
by derfreietrader
Foot Locker: How to Trade A Stock That Gaps and CrapsFoot Locker: How to Trade A Stock That Gaps and Craps March 4, 2019 by Dr. Duru Foot Locker (FL) reported earnings before the market opened on March 1, 2019. The initial reaction to the news was extremely positive: FL gapped up 14.0%. Sellers took over from there and pushed the stock down to a close with a 6.0% gain. The stock still managed to close above its upper Bollinger Band (BB), so technically it remains extended. {Foot Locker (FL) printed a major post-earnings breakout to a 21-month high. Sellers faded the stock off its intraday high for a 6.0% gain at the close.} This gap and crap (or trap) was dramatic. However, since the stock still closed the day with a substantial gain, this gap and crap is not a topping pattern in of itself. The stock still has a “decent” chance to recover its post-earnings strength after what is called a “calm after the storm” pattern. In the case of FL, the storm is the post-earnings gap up. The calm will be a relative deceleration in the trading action where volume and the daily price range contracts for a short time period. Sometimes this period looks like a brief consolidation where the stock drifts. Ideally, the stock will reverse the entire post-earnings gap to provide a definitive test for traders (buyers in the case of FL). Swingtradebot describes a calm this way: In the days after a “storm”, the stock must make an NR7, a narrow range bar (NRB) (day’s range less than half the stock’s average true range) or have a real body (distance between the open and the close) less than half the stock’s average true range (which might catch reversal candlesticks like doji, hammers or shooting stars). The buying opportunity occurs at any given point during the calm – a 1 to 3 day wait seems typical. For FL, the clear stop-loss would be at a new post-earnings low. At such a point, trading with the on-going downward momentum makes sense. I will probably use options to trade FL in the immediate post-earnings period. On the long side, I might start with a calendar call spread at the $65 strike for a 2-week trade. For longer time periods, I would go for the $70 strike. I set the strike at a point where I think the stock can reach but not surpass before the short side of the calendar spread expires. This options configuration also assumes the upward momentum will continue apace after the short side expires. If I am buying options several days into the calm, I would go for straight call options under the assumption that the resumption of upward momentum is imminent and will be strong. To the downside, I like a put spread with the bottom of the spread set around $54 where the 50 and 200-day moving averages (DMAs) are converging to provide support. FL is a heavily shorted stock with 9.8% of its float sold short as of February 14th (per Yahoo Finance). I am guessing that short-covering helped to exaggerate the move higher after bears saw the good headlines on earnings like “Fourth Quarter Comparable Store Sales Increased 9.7%” and “A Record Total Annual Sales of $7.9 Billion.” Guidance was also strong: “…we can continue to elevate our financial performance by generating a mid-single digit comparable sales gain and another double-digit percentage increase in earnings per share.” Moreover, the company continues to express great confidence in its business by returning a lot of cash to shareholders. From the transcript (emphasis mine): “During the quarter, we repurchased a total of 1.2 million shares for approximately $62 million, bringing our full year total to 7.8 million shares at a cost of $375 million. We also returned $158 million of cash to our shareholders through our quarterly dividend in 2018, which brought our total return to shareholders for the year to $533 million. As we announced in February, our board increased our quarterly dividend payout rate to $0.38 per share and authorized a new 3-year $1.2 billion share repurchase program. “ If a calm unfolds after this storm, I am guessing it will come as a result of the end of profit-taking from the over-extended condition at least partly created by shorts scrambling to cover. {Foot Locker (FL) has trended generally upward since a major bottom in November, 2017. The stock is in its final push to recover losses that started with earnings in May, 2017.} Full disclosure: no positions
NYSE:FL
by drduru