Why Foot Locker Stock Rallied 12% at the Open Today
Shares of Foot Locker (NYSE: FL), a retailer of footwear and apparel, rose as much as 12% in early trading on May 20. The big story was the company's first-quarter 2022 earnings update, which was far more positive than it looked when you dig below the headline numbers.
Foot Locker reported sales of $2.175 billion in the first quarter of 2022, up a tiny 1% year over year. Same-store sales dropped 1.9%, with management highlighting particular strength in its apparel business relative to footwear. That's notable because the company has been dealing with Nike, historically a key supplier and one of the largest footwear brands on earth, shifting toward selling more of its products through its own sales channels. In other words, although Foot Locker's numbers seem a little light, they suggest that the company is actually navigating a material headwind quite well as it looks to broaden its assortment.
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Source Fool.com
