However, the stock is notably off its highs, as shares were up almost 8% at one point. From up 8% to up less than 2% is a notable move, even if the stock is still higher on the day.
It’s not exactly a resounding boost of confidence for the bulls -- even after a top- and bottom-line beat.
That said, earnings of 71 cents per share were up 7.6% year-over-year and beat expectations by 2 cents per share. Revenue of $2.077 billion was up a surprising 17.1% year-over-year and eked past estimates.
But that’s not all. Same-store sales jumped more than 18%, while the retailer reinstated its dividend. Although it's only paying out 15 cents per share per quarter (down more than 60% vs. the prior dividend of 40 cents per share), it shows Foot Locker is on the right track.
Still, the stock’s reaction does not give us the same feeling, particularly with other retailers like Target (TGT) - Get Target Corporation Report and brands like Nike (NKE) - Get NIKE, Inc. (NKE) Report at new highs.
Let’s take a closer look at the charts.
Trading Foot Locker Stock
Initially, the stock gapped higher, opening at $28.86 and right at its 20-day and 50-day moving averages. For a moment, shares were able to push higher, with Foot Locker stock climbing to a high of $29.30 on Friday morning.
Those big gains didn’t last long though, with shares quickly retreating below the opening price and dipping below those key shorter term moving averages.
In the coming hours and days, Foot Locker can either make things much worse by breaking below support or much better by reclaiming these key moving averages.
If it’s the latter and Foot Locker stock can clear the post-earnings high, look for a run up to range resistance near $31. There it will also find the 200-day moving average. If the stock can clear this area, it puts a run to the June highs in play near $35. If it can’t clear $31, it may remain range-bound.
On the downside, range support is nearby at $27. If Foot Locker stock closes below this mark, it will almost immediately put the 38.2% retracement in play at $26.29. Bulls desperately want to see the stock hold these two levels.
Below it and technically the 23.6% retracement is in play near $23.