Foot Locker's Q3: Not That Bad Though The Market Was Spooked, Still A Hold

Dec. 04, 2024 4:47 PM ETFoot Locker, Inc. (FL) Stock
Quipus Capital
1.49K Followers
(8min)

Summary

  • Foot Locker, Inc.'s Q3 2024 results missed guidance, leading to a 10% stock drop, and FY24 guidance was lowered due to margin pressures and increased SG&A.
  • Positive comparable sales in North America and Europe, across banners, with footwear performing well.
  • Gross margins improved by 230bps, but Nike's DTC promotions pressured margins; SG&A increased by 8%, negating gross margin gains.
  • Foot Locker remains a Hold due to valuation concerns, despite potential for margin recovery; interested if price drops below $15.

Foot Locker retail store - burred shoppers walking by, Plymouth, UK

Wirestock

Foot Locker, Inc. (NYSE:FL) released Q3 2024 results, disappointing the market by not meeting 3Q24 guidance and lowering FY24 guidance. The stock moved down 10% the day after the release.

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This article was written by

1.49K Followers
Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very small fraction of companies should be a buy at any point in time. However, hold articles provide important information for future investors and a healthy dose of skepticism to a relatively bullish-biased market.Disclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published.

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