The 10-second takeaway
For the quarter ended April 28 (Q1), Foot Locker beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins expanded across the board.
Foot Locker logged revenue of $1.58 billion. The 14 analysts polled by S&P Capital IQ expected to see sales of $1.55 billion on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $1.45 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.83. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.74 per share. GAAP EPS of $0.83 for Q1 were 38% higher than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.0%, 130 basis points better than the prior-year quarter. Operating margin was 12.8%, 240 basis points better than the prior-year quarter. Net margin was 8.1%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $6.06 billion. The average EPS estimate is $2.43.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 139 members out of 202 rating the stock outperform, and 63 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Foot Locker a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Foot Locker is outperform, with an average price target of $34.19.
Can your retirement portfolio provide you with enough income to last? You'll need more than Foot Locker. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Foot Locker to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.