Shares of Foot Locker (FL) rose 0.43% to $71.66 Friday after the sneaker and athletic apparel retailer said third quarter earnings beat expectations and that its inventory is looking good heading into the year-end shopping season.
Foot Locker reported earnings of $1.13 a share, compared with analysts' expectations for $1.10 a share expectations. Revenue of $1.88 billion matched expectations.
Quarterly same store sales rose 4.7% year over year, and were about even compared with the second quarter. Inventory increased 2.2% year over year on a constant currency basis.
"Our inventory is fresh and well positioned as we prepare for the important holiday selling season, and we remain well on track to achieve our annual guidance of a mid-single digit comparable-store sales gain and double-digit earnings per share growth," CFO Lauren Peters said in a statement.
Foot Locker told analysts that it expects to see double digit full year earnings growth after the first quarter, and reiterated that in its second quarter and third quarter earnings releases. Wall Street's consensus is for the company's earnings to rise 10.5% this year.
Analysts at Credit Suisse lowered the company's price target to $68 from $71 Friday, even though the firm says Foot Locker is the best bet in the athletic shoe sector.
"There remains risk from overexposure to brick-and-mortar (2,350 stores domestically) which has held back incremental operating margin expansion. We maintain our Neutral rating," Credit Suisse analysts Christian Buss, Sara Shuler, and Pallavi Bakshi said.
Analysts at Wedbush maintained their "outperform" rating and $80 price target on the stock.