Foot Locker, Inc. (FL) – Powering up for the holidays

Foot Locker, Inc. (FL) Equity Report (Q2FY24)

Stock performance: Foot Locker’s stock gave returns of -27.1% and -37.4% in the period of three months and one year. The stock has a 52-week high of $47.22 and a 52-week low of $14.84. The stock gave returns of -47% and CAGR of -19.1% over a period of three years. The stock had a 200-Day Moving Average of $31.24and a 50-Day Moving Average of $19.33.

Quarter Performance: In Q2FY24, total sales decreased by 9.9%, to $1.86bn, compared to $2.07bn in Q2FY23. Excluding the effect of foreign exchange rate fluctuations, total sales in Q2FY24 decreased by 10.2%. Comparable-store sales decreased by 9.4%, driven by ongoing consumer softness, changing vendor mix, and the repositioning of Champs Sports.

Guidance: For FY24, FL expects its sales to decline by 8% to 9% and the gross margin to be in the range of 27.8%-28%. SG&A is expected to be in the range of 22.7% -22.9% and depreciation is expected to be approximately $203mn. Net Interest is expected to be approximately $12mn and non GAAP tax rate is expected to be ~33%. The adj. EPS is expected to in the range of $1.30-$1.50.

Highlights

FL focuses on strengthening its relationship with customers. It is focusing on building brand equity, expanding their customer base, and enhancing their loyalty program and CRM capabilities.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 44

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