Why Foot Locker Stock Plunged Today
Shares of Foot Locker (NYSE: FL) plunged 29.4% on Wednesday after the company announced a large loss based on generally accepted accounting principles (GAAP) for the crucial holiday quarter and followed with weak forward guidance.
For its fiscal fourth quarter 2023 ended Feb. 3, 2024, Foot Locker's total sales grew 2% year over year -- though comparable sales fell 0.7% after accounting for an extra week in the fiscal year -- to $2.334 billion. That translated to a quarterly net loss of $389 million, or $4.13 per share. Adjusted for nonrecurring items -- namely a $478 million noncash charge related to minority investments and $75 million related to a partial settlement of pension plan obligations -- Foot Locker's (non-GAAP) net income was $36 million, or $0.38 per share, down from $0.97 per share in the same year-ago period.
Still, Foot Locker CEO Mary Dillon noted the company's fourth-quarter results were above its expectations. And analysts, on average, were modeling lower adjusted net income of $0.32 per share on revenue of $2.28 billion.
Source Fool.com
