Foot Locker stock reverses early losses as it unveils plan to expand sneaker line and relaunch core brand

Foot Locker Inc. stock reversed premarket losses early Monday, after the sporting goods retailer’s stronger-than-expected fourth quarter weighed against weaker-than-expected guidance for the current year.

The stock
was last up 1.5% ahead of Monday’s open, after earlier falling more than 3%.

The New York-based company posted net income of $19 million, or 20 cents a share, for the fiscal quarter to Jan. 28, down from $103 million, or $1.02 a share, in the year-earlier period. Adjusted per-share earnings came to 97 cents, well ahead of the 51 cent FactSet consensus.

Sales fell 0.3% to $2.334 billion from $2.341 billion a year ago, also ahead of the $2.146 billion FactSet consensus. Same-store sales rose 4.2%, while FactSet expected a decline of 6.7%.

Same-store sales were boosted by increased traffic and improved access to fresh inventory, which lifted sales across brands and regions.

“Our team delivered a great finish to the year with strong fourth-quarter results that capitalized on resilient Holiday demand and a compelling assortment and inventory position from our brand partners,” Chief Executive Mary Dillon said in a statement.

The company is planning to simplify its operations in 2023 and invest in core businesses, she added, a plan that it will outline later Monday at an Investor Day.

The company now expects fiscal 2023 same-store sales to fall 3.5% to 5.5% and for adjusted EPS to range from $3.35 to $3.65. The FactSet consensus is for same-store sales to fall 1.5% and for EPS of $4.11.

See also: Hibbett profit and sales fall below estimates as shoppers buy footwear but shun apparel

The company is also planning to overhaul its Asia operations, closing stores and e-commerce in Hong Kong and Macau. It plans to convert its current owned and operated stores and e-commerce in Singapore and Malaysia to a license model, to continue to operates its stores in South Korea and to pursue growth in Asia via license partners.

The company’s Investor Day will detail its new “Lace…


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