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
FL,
-1.03%
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.
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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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