The stock of Foot Locker, Inc. (FL) declined by approx. 9.35% from the value it closed in the last trading session. The stock was closed at $57.56 in the last trading session.
Reason for the FL stock decline
Today Foot Locker, Inc. (FL) announced its result for the third quarter of this year. The financial statement was positive but there was news that resulted in the decline of its stock. The reason for the decline of its stock was the supply chain. The company said that despite the holidays they were ready for the operations and to meet the customers’ demand but they faced supply chain issues which resulted in the decline of the stock.
Financial Highlights of Foot Locker, Inc. (FL) Stock 3rd quarter
- The company’s sales were reported to be $2,189 million. This is an increase of 3.9% from the same quarter of the last year which was $2,106 million.
- The company reported a net income of approx. $158 million.
- The gross margin of the company expanded by 380 basis points to reach 34.7%
- Foot Locker, Inc. (FL) cash and cash equivalent was reported to be $1,339 million. Their debt was $560 million at the end of 3rd
Major achievements in the 3rd quarter
- Foot Locker, Inc. (FL) completely acquired Atmos for $360 million, which is subjected to customary adjustments.
- The company’s 3rd quarter showed a very strong performance, the sales increased by 3.9%
- In the 3rd quarter, the company opened 32 new stores. They remodeled or relocated 29 stores.
- The company repurchased $129 million worth of 2.75 million shares.
- They also completed their acquisition of WSS by investing $737 million.
What next?
Foot Locker, Inc. (FL) says that they are positive in regards to meeting the customer’s demand in the holidays, despite having the supply chain barriers in the 4rth quarter.
Conclusion
After the announcement of financial statements, the stock of Foot Locker, Inc. (FL) is declining due to the above mention reasons. No doubt the company looks strong on the balance sheet and its financial results are promising but the sudden supply chain barriers caused the stock to slightly decline. It news was not welcomed by the investors and they seemed a bit conscious while trading in its stock. There is a hope that the company will solve the problem of supply chain barriers.
