Foot Locker Stock Slides After Warning On Supply Chain Constraints; Beats Q3 Estimates

Foot Locker Inc FL reported third-quarter FY21 sales growth of 3.9% year-on-year, to $2.189 billion, beating the analyst consensus of $2.12 billion. Third-quarter comparable-store sales increased 2.2%. Adjusted EPS of $1.93 beat the analyst consensus of $1.37.

• The gross margin expanded 380 basis points to 34.7%.
• Selling, general and administrative expenses rose 8% Y/Y to $458 million.
• The operating margin was 9%, and operating income for the quarter rose 10.1% to $196 million.
• The company held $1.3 billion in cash and equivalents as of October 30, 2021.
• Footlocker said it expects global supply chain constraints to persist throughout the fourth quarter.
• Price action: FL shares are trading lower by 6.98% at $53.54 in premarket on the last check Friday.