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Foot Locker Stock Falls Despite Q3 EPS Beat, Revenue Beat

Updated: 19 Nov 2021

Foot Locker (NYSE: FL) announced an earnings per share of $1.93 before the bell on Friday, with revenue coming in at $2.19 billion. 

The numbers reported beat analyst expectations of an EPS of $1.34 and revenue of $2.12billion.

Also Read: Why Foot Locker is One of the Best Clothing Stocks

“The combination of robust demand and fresh inventory, coupled with more full-priced selling, led to gross margin expansion of 380 basis points to 34.7%, from the 30.9% in the prior year period,” added Andrew Page, Executive Vice President and Chief Financial Officer. 

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“In addition, we bolstered our already strong balance sheet with the issuance of $400 million of Senior Notes due in 2029, the Company's new credit benchmark and its first offering in over 20 years.”

Despite the positive quarter, when looking ahead, Page added: “We expect global supply chain constraints to persist throughout the fourth quarter; that said, we believe we are positioned for the holiday season, with positive momentum and inventory levels ready to meet customer demand.”

In reaction to the potential supply chain issues in Q4, Foot Locker's share price has fallen over 9% to $52.03.

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