LONDON, UK / ACCESSWIRE / June 26, 2018 / If you want access to our free earnings report on Foot Locker, Inc. (NYSE: FL), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FL. Foot Locker reported its first quarter fiscal 2019 operating and financial results on May 25, 2018. The shoe store outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Foot Locker most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter fiscal 2018, Foot Locker's total sales increased 1.2% to $2.03 billion compared to sales of $2.00 billion for Q1 2017. Excluding the effect of foreign exchange rate fluctuations, the Company's total sales for the reported quarter fell 1.5%. The Company's reported numbers beat analysts' estimates of $1.97 billion.

During Q1 2018, Foot Locker's comparable-store sales fell 2.8%.

For Q1 2018, Foot Locker's gross margin rate decreased to 32.9% from 34% in Q1 2017. The lower rate reflected a 60-basis point (bps) decline in the Company's merchandise margin rates and was 50 bps of deleverage of Foot Locker's occupancy and buyer's compensation.

The Company's reported quarter selling, general, and administrative (SG&A) expense rate increased to 19% in the reported quarter versus 18.5% in the year earlier same quarter, with higher forex rates contributing 20 bps of the increase. The further 30 bps of deleverage was attributable to the significant investments the Company is making into its digital operations as well as wage pressures and legal settlement costs.

Foot Locker's net income was $165 million, or $1.38 per share, for Q1 2017 compared to net income of $180 million, or $1.36 per share, in Q1 2017. The Company's reported quarter results included an incremental $12 million charge related to Foot Locker's pension litigation. Excluding this charge, which reduced the Company's after-tax earnings by $0.07 per share, Foot Locker's non-GAAP earnings were $1.45 per share, reflecting a 7% increase compared to the year ago same period, and came in ahead of Wall Street's estimates of $1.25 per share.

Financial Position

Foot Locker's merchandise inventories were $1.21 billion as at May 05, 2018, 5.4% lower on a y-o-y basis.

As of May 05, 2018, Foot Locker's cash totaled $1.03 billion, while the debt on its balance sheet was $125 million.The Company spent $112 million to repurchase 2.6 million shares during the reported quarter and paid a quarterly dividend of $0.345 per share, spending $41 million.

Store Base Update

During Q1 2018, Foot Locker opened 11 new stores, remodeled or relocated 43 stores, and closed 37 stores.As of May 05, 2018, the Company operated 3,284 stores in 24 countries in North America, Europe, Australia, and New Zealand.In addition, 105 franchised Foot Locker stores were operating in the Middle-East as well as 11 franchised Runners Point stores in Germany.

Outlook

For the second quarter 2018, Foot Locker is anticipating comparable sales to be flat to up slightly, and the Company is expecting low single-digit comparable sales increase in Q3 2018 and Q4 2018, strengthening within that low single-digit range as the year progresses. For the full year 2018, Foot Locker is estimating comparable sales to be flat to low single-digit growth.

For the upcoming quarter, Foot Locker is expecting gross margin to improve by approximately 20 to 50 bps. The Company is expecting Q2 2018 SG&A expense rate to increase as a percent of sales by 110 to 140 bps, which reflects the increased digital investments.

For the full year 2018, Foot Lockers is forecasting double-digit earnings growth over the Company's FY17 earnings of $3.99 per share, on a non-GAAP 52-week basis. Gross margin, also on a non-GAAP 52-week basis, is now likely to improve 10 to 30 bps.

Stock Performance Snapshot

June 25, 2018 - At Monday's closing bell, Foot Locker's stock declined 2.58%, ending the trading session at $53.17.

Volume traded for the day: 2.32 million shares.

Stock performance in the last month - up 14.62%; previous three-month period - up 17.48%; past twelve-month period - up 10.70%; and year-to-date - up 13.42%

After yesterday's close, Foot Locker's market cap was at $6.46 billion.

Price to Earnings (P/E) ratio was at 17.75.

The stock has a dividend yield of 2.60%.

The stock is part of the Consumer Goods sector, categorized under the Textile - Apparel Footwear & Accessories industry.

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