- Foot Locker (NYSE:FL) stock is up 2% today on better-than-expected first-quarter earnings
- The company reported sales of $2.18 billion for the period, up only 1% year-over-year (YOY)
- However, earnings per share (EPS) of $1.60 handily beat expectations
Shares of FL stock are up about 2% today after Foot Locker issued better-than-expected Q1 earnings.
For the period, Foot Locker reported sales of $2.18 billion, up 1% YOY. However, the retailer said it also earned $1.60 per share in the quarter, which was far ahead of the $1.47 EPS that analysts had expected. That big profit beat has FL stock rising today as the broader market continues to slump.
So far this year, FL stock is down about 30% at $31 per share. Here’s what else investors should know about the report.
FL Stock and Q1 Earnings
For Q1, Foot Locker reported that same-store sales fell just 1.9%. Management highlighted strength in Foot Locker’s apparel business as a reason the company has been able to weather inflation relatively well.
Analysts and investors seem to like how Foot Locker is navigating inflation right now. Additionally, while retailers like Walmart (NYSE:WMT) and Target (NYSE:TGT) have slashed their outlooks, Foot Locker actually reaffirmed its guidance for 2022. The company expects sales and earnings to be on the “high side” of the provided range.
For 2022, Foot Locker now expects EPS to be at the upper end of the $4.25 to $4.60 range. Full-year sales are also expected to be at the upper end of the outlook, which is down 4% to 6% from 2021.
Why It Matters
On May 18, the market suffered its worst day in two years, with the Dow Jones Industrial Average falling more than 1,100 points. The stock market sold off sharply as several major retailers reported disappointing earnings and lowered their outlooks. Foot Locker is bucking the trend, however, demonstrating that it’s not all doom and gloom for retailers.
While FL stock has not been able to avoid the market downturn this year, its share price is getting a reprieve today. Going forward, the company will need to demonstrate that it can keep exceeding Wall Street expectations.
On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.