Foot Locker (NYSE:FL) shares jumped more than 17% intra-day today after the company reported its third-quarter earnings, with EPS of $0.30 surpassing the analyst prediction of $0.22. The company’s revenue for the quarter was $1.99 billion, exceeding the Street estimate of $1.96 billion.
Mary Dillon, the Chief Executive of Foot Locker, described the results as “strong,” particularly highlighting the performance over the Thanksgiving week, which included the critical Black Friday sales event. Despite these positive results, Dillon pointed out that the company is dealing with “ongoing consumer uncertainty.” This sentiment echoes the concerns of many retailers who fear that shoppers might reduce their spending during the holiday season due to the challenges posed by high inflation and increased interest rates.
Looking ahead, Foot Locker provided guidance for the fiscal year 2024. The company expects an EPS in the range of $1.30 to $1.40, slightly adjusted from the previous forecast of $1.30 to $1.50, and above the Street estimate of $1.28. Sales are projected to decrease by 8.0% to 8.5%, which is a slight improvement compared to the earlier forecast of an 8.0% to 9.0% decline.