You can find the Foot Locker first quarter results (here)
From the report, as they highlighted:
- Net Income of $191 Million, an All-Time High for the Company
- 25th Consecutive Quarter of Sales and Profit Increases
- Earnings Per Share of $1.39, an 8 Percent Increase
- Comparable-Store Sales Increase of 2.9 Percent
We produced the most profitable quarter in the Company’s long history, an accomplishment of which everyone at Foot Locker, Inc. should be very proud
Sounds not so bad you think, still the stock is losing around 6% today. The key word here is “rose less than analysts were expecting“. It seems it’s the same with Ross Store (ROST), they are also down today although profit for the quarter was better than projected.
As Peter Schacknow on CNBC.com writes:
The athletic footwear and apparel retailer matched estimates with first-quarter profit of $1.39 per share. Revenue was slightly below analysts’ expectations, and the comparable-store sales increase of 2.9 percent was below consensus estimates of a 4.5 percent jump.
I don’t see this as a tragedy. How can they match estimates, almost match revenue and miss so much on CSS anyway? Foot Locker is defiantly one of the stronger retailers.
To give you a perspective how bad some other names in retail industry performed:
- Kohl’s Corporation for example had an (3.7)% and -3,9% in same store sales
- Macys in 1Q16 had to report a decrease of 7.4 percent in sales, comparable sales were down by 5.6 percent
I think the best thing an Investor can do about this is looking at the business and ignore Mr. Market. If the business do well the stock will follow.
Foot Locker now trades at a Forward PE of 12,3 (gurufocus) and a dividend yield of 1,75%.