Foot Locker, Inc. (NYSE:FL) shares are on the back foot after the athletic retailer revealed a weaker-than-expected outlook for fiscal 2023, despite posting fourth-quarter earnings that topped expectations.
The New York-based athletic retailer achieved fourth-quarter revenue of $2.334 billion, down 0.3% year-over-year from $2.341 billion, but ahead of the consensus expectation per FactSet of $2.146 billion.
Adjusted earnings per share came in at $0.97, down from $1.46 in the year-ago quarter but far exceeding the consensus expectation of $0.51.
Same-store sales, which were expected to show a decline of 6.7%, were up 4.2%, which Foot Locker attributed to increased traffic and improved access to high-quality inventory.
However, the company’s weaker-than-expected fiscal 2023 outlook sent investors running.
Foot Locker is forecasting a decline in same-store sales ranging between 3.5% and 5.5%, a far higher figure than the FactSet consensus expectation of a decline of 1.5%.
For fiscal 2023, the company expects to post adjusted earnings per share between $3.35 to $3.65, below the consensus expectation of $4.11.
Foot Locker shares, which initially shed pre-market losses following the release of its latest results, reversed and were trading down 1.2% at US$41.77 shortly before noon on Monday.
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