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Friday, May 22, 2020

Foot Locker (FL) reported earnings on Fri 22 May 20 (b/o)

** charts before earnings **


** charts after earnings **

Foot Locker misses by $0.44, misses on revs; Q1 comps -42.8%; decided to temporarily suspend the cash dividend beginning with the Q2 payment 

  • Reports Q1 (Apr) loss of $0.67 per share, excluding non-recurring items, $0.44 worse than the S&P Capital IQ Consensus of ($0.23); revenues fell 43.4% year/year to $1.18 bln vs the $1.31 bln S&P Capital IQ Consensus. First quarter comparable-store sales decreased 42.8 percent.
  • Actions taken by the Company to preserve cash and increase liquidity included: borrowing $330 million under the Company's $400 million credit facility; limiting capital expenditures to essential projects and reducing the full year capital expenditure forecast by 50% to $138 million; minimizing non-essential spending, including reductions in marketing, extending payment terms, limiting rent payments, and reducing merchandise purchases; and reducing salaries and deferring incentive compensation for the CEO and senior executives.
  • Additionally, while Foot Locker remains committed to returning capital to shareholders, the Company's Board of Directors has decided to temporarily suspend the cash dividend beginning with the second quarter payment. The Board will continue to evaluate the dividend policy on a quarterly basis. As previously disclosed on April 22, the Company also temporarily suspended its share repurchase program.
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