Foot Locker (NYSE:FL) stock is taking a beating on Wednesday after the athletic wear retailer released its Q2 earnings report.
The bad news for FL stock starts with its adjusted earnings per share of 4 cents. That’s below the 5 cents per share that Wall Street was expecting for the quarter. In addition to that, it represents a major drop from the $1.10 per share reported in the second quarter of 2022.
To go along with this, Foot Locker reported revenue of $1.86 billion in the second quarter of the year. That’s another miss for the company next to analysts’ estimate of $1.88 billion. Likewise, it represents a year-over-year drop of 9.9% compared to $2.07 billion.
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Not helping Foot Locker stock is the company announcing a pause to its quarterly cash dividend. The company claims it’s taking this action to “increase balance sheet flexibility in support of longer-term strategic priorities.”
Another blow to FL stock comes from its updated 2023 outlook. It now expects adjusted EPS between $1.30 and $1.50. That’s a drop from its prior adjusted EPS guidance of $2 to $2.25. It also doesn’t look good next to Wall Street’s adjusted EPS estimate of $2.01 for 2023.
With this news comes some 3 million shares of FL stock changing hands. That roughly matches its daily average trading volume. It also has the stock falling 31.3% as of Wednesday morning.
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On the date of publication, William White did not have (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.
