Post-Earnings Research - Foot Locker

LONDON, December 15, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings research on Foot Locker Inc. (NYSE: FL). On November 21, 2014, the company reported its financial results for Q3 FY14 (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Foot Locker Inc. (Foot Locker). During Q3 FY14, Foot Locker's sales grew 6.7% on a Y-o-Y basis, and its diluted EPS increased 17% from the preceding year. The Chairman and CEO of Foot Locker, Ken C. Hicks, stated that the company's team has produced another very strong quarter, marking its 19^th consecutive quarter of meaningful sales and profit growth. The company is making substantial progress towards its key operational and financial objectives, including net income margin, sales per gross square foot, and return on invested capital, he added. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Foot Locker's sales for the reported quarter increased to $1,731 million from $1,622 million in Q3 FY13. The company's reported sales exceeded Bloomberg analysts' forecasts of $1,721 million. Foot Locker's comparable-store sales grew 6.9%. Further, the company's gross margin rate for Q3 FY14 improved to 33.2% of sales from 33.1% in the prior year, while its selling, general, and administrative expense rate improved to 20.4% of sales from 21.0% in Q3 FY13. The free research on FL can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Foot%20Locker&d=15-Dec-2014&s=FL

The company's Q3 FY14 income before taxes stood at $187 million, compared to $160 million in Q3 FY13. During the reported quarter, Foot Locker recorded an income tax expense of $67 million compared to $56 million in Q3 FY13. The company's Q3 FY14 net income increased to $120 million, or $0.82 per diluted share, from $104 million, or $0.70 per diluted share, in the year-ago quarter. The company's Q3 FY14 net income outperformed Bloomberg analysts' forecasts of $114 million, or $0.78 per diluted share. Further, on a non-GAAP basis, Foot Locker's Q3 FY14 net income increased to $121 million, or $0.83 per diluted share, from $102 million, or $0.68 per diluted share, in Q3 FY13.

The Executive Vice President and COO of Foot Locker, Dick Johnson, said that the company is well positioned to build on the momentum that its team has created over the last several years. Mr. Johnson added that it will be a tremendous privilege to lead the organization as the company leverages its strengths, which include its global scope, banner differentiation, omnichannel capabilities, and its people, in pursuit of the exciting opportunities the company has identified to grow and improve the business in the near and long term. Sign up and read the free analyst's notes on FL at:

http://get.Investor-Edge.com/pdf/?c=Foot%20Locker&d=15-Dec-2014&s=FL

As of November 1, 2014, Foot Locker's merchandise inventory stood at $1,324 million, an increase of 0.6% from Q3 FY13. At the end of Q3 FY14, the company's cash and cash equivalents stood at $916 million compared to $796 million for Q3 FY13.

During the reported quarter, Foot Locker repurchased 683 thousand shares of its common stock for $38 million, bringing its FY14 year-to-date repurchase activity to 3.55 million shares worth $174 million.

In Q3 F14, Foot Locker opened 35 new stores, remodeled or relocated 67 stores, and closed 21 stores. As of November 1, 2014, the company operated 3,474 stores in 23 countries in North America, Europe, Australia, and New Zealand. The company also operated 46 franchise Foot Locker stores in the Middle East and South Korea, and 27 franchised Runners Point and Sidestep stores in Switzerland and Germany. Visit Investor-Edge and access the latest research on FL at:

http://get.Investor-Edge.com/pdf/?c=Foot%20Locker&d=15-Dec-2014&s=FL

Stock Performance  

On the day of the earnings release, November 21, 2014, Foot Locker's stock ended the session at $54.55, down 4.30%. Although the company's shares have moved both ways since then, the gains have outweighed the losses so far. On the last close, Friday, December 12, 2014, the stock finished 0.41% lower at $56.15, after vacillating between $55.92 and $57.00. A total of 1.81 million shares were traded, which was below its three months average volume of 2.28 million shares. Over the last one month and since the start of 2014, the company's shares have advanced 0.86% and 35.50%, respectively. However, the stock has lost 0.60% in the previous three trading sessions. Shares in Foot Locker closed above their 50-day and 200-day moving averages of $55.43 and $51.06, respectively. Furthermore, the stock traded at a PE ratio of 16.52 and has a Relative Strength Index (RSI) of 50.24.

Sneak Peek to Corporate Insider Trading 

In the last one month Foot Locker has reported two insider trading transactions to the U.S. Securities and Exchange Commission (SEC). On December 01, 2014, Dona D. Young, Director at Foot Locker, bought 1,878 shares, at a price of $26.61 per share and sold 882 shares at $56.70 per share. Complimentary in-depth research on FL is available at:

http://get.Investor-Edge.com/pdf/?c=Foot%20Locker&d=15-Dec-2014&s=FL

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