- The Foot Locker stock price surged 5.51% on impressive Q1 earnings results.
- The sportswear company’s earnings bear analysts' estimates, hence the rally.
- FL stock looks attractive at current prices if it can rise above a crucial level.
The Foot Locker, Inc. (NYSE: FL) stock price surged 5% after the sportswear company released its Q1 2022 earnings results. The company revealed that its gross sales rose 1% to $2.175 billion compared to $2.153 billion in Q1 2021, while same-store sales fell 1.9%.
Also read: The Best Clothing Stocks To Buy.
The company’s omnichannel marketing strategy paid off given the period’s tough comparison with Q1 2021, which had a very different economic environment, given that inflation levels were not as high as in Q1 2022.
Foot Locker revealed that apparel sales were much higher than footwear sales due to changing customer preferences. As a result, the company revealed that it was focused on meeting its customers' demand for more choices in its footwear and apparel segments.
The sportswear company’s results were a welcome relief for investors in a quarter where many retailers have reported weak numbers driven by higher transport and labor costs. The firm maintained its earnings outlook for the entire year, expecting them to be at the higher end of the stipulated range.
Investors reacted positively to Foot Locker’s Q11 results, evidenced by the rally in its share price.
Richard Johnson, Foot Locker’s Chairman and CEO, said: “We are off to a strong start in 2022, reporting a solid quarter against the tough comparisons of fiscal stimulus and historically-low promotions from last year.”
“As we elevate brands across our portfolio, continue to use our real estate flexibility to optimize our footprint, and evolve our omnichannel capabilities, we are excited about our improving ability to expand our customer base and fuel our consumer's desire for self-expression.”
Foot Locker shares have fallen 30.55% this year but are attempting to bounce back. However, I would wait for the shares to break above the $32.50 resistance level before buying the stock, which must hold above the level for a few days. A break back below the level could retest the $26.83 support level, another excellent buying opportunity.
*This is not investment advice. Always do your due diligence before making investment decisions.
Foot Locker stock price.
The Foot Locker stock price rallied 5.51% to trade at $31.97, rising from Thursday’s closing price of $30.30.