Here's Why Foot Locker Stock Soared Today
Shares of shoe retailer Foot Locker (NYSE: FL) are soaring this morning after the company reported financial results for its fiscal third quarter of 2023. I'm not sure the quarter could be called "good" by any means. But it was better than depressed expectations, and it offered a glimmer of hope for the future. And that's why Foot Locker stock was up 17% as of 10:15 a.m. ET.
Generally speaking, I'd say a good quarter would show revenue growth and profit-margin improvements. But Foot Locker showed exactly the opposite. In Q3 (which ended Oct. 28), the company's revenue fell 8.6% year over year. Moreover, its net income fell to $28 million from $96 million in the prior-year period.
Foot Locker resorted to marking down prices to stimulate sales. As a result, its gross margin fell from 32% last year to 27.4% in Q3.
Source Fool.com
