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Foot Locker (FL), profits rose more than expected in the fourth quarter, fueled by much better than expected store sales. Shortly after Friday's stock exchange, Foot Locker shares jumped. Meanwhile, key partner Nike (NKE) has entered an area of purchase.
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Foot Locker Gains
estimates: Wall Street predicted that Foot Locker's earnings per share would rise 10 percent to $ 1.39, according to Zacks Investment Research. Revenue was seen slipping 2% to $ 2.166 billion. Consensus Metrix saw same-store sales increase 4.6%. In athletic stores, it increased 2%, while direct sales to customers increased 12%.
Results: Foot Locker's profit jumped 24 percent to $ 1.56 a share. Revenues rose 2.8% to $ 2.272 billion. Same store sales jumped 9.7%.
Foot locker stock
Shares jumped 8% to 64.28 on Friday, after a sharp rise to 68%. The Foot Locker action closed Thursday in a range of 57.42 points with a point of purchase at the base of the handle, reveals the analysis of MarketSmith. His relative strength, which tracks a stock's performance against the S & P 500 Index, is close to record highs.
Stock of Nike in rupture
Nike, the giant of shoes and sportswear, which supplies about 60% of Foot Locker's goods, rose 1.5% to 86.98 earlier in the day. Nike shares, a component of the Dow Jones, offset a purchase point of 86.14 cups.
Nike rivals Under protection (UAA) and Adidas (ADDYY) increased by 1.5% and 2.3%, respectively.
Foot Locker's profit trend is improving
The IBD Composite score is 56 for the Foot Locker action. The stock verification tool shows that its EPS has decreased by 2% over the last three years, but has increased by 12% over the previous three quarters. Foot Locker's earnings growth in the fourth quarter of 24% was the best of several years.
Last month, Foot Locker announced that it was increasing its dividend to 38 cents a share and would repurchase $ 1.2 billion of its shares.
Foot Locker also announced earlier this month the largest investment in its history, with a $ 100 million stake in the GOAT group. Foot Locker has taken a strategic minority position in the company via its subsidiary 1661. Companies are considering combining their efforts on digital and physical retail platforms.
Foot Locker has recently made several investments. Last month, he took a stake in the Carbon38 luxury women's sportswear brand and the Super Heroic children's clothing brand. She also made a strategic investment in the Pensole shoe design academy.
Analyst Expects Future Growth for Foot Locker Stock
Prior to Foot Locker's earnings, Christopher Svezia, an analyst at Wedbush Securities, said the stock was outperforming and raised her price target from 63 to 67.
"The product portfolio supports the continued growth of the company." The continued accelerations of Nike and Jordan are likely, as well as favorable comparisons in adidas (Europe), as well as additional brands such as Vans, UGG, Fila, Champion, Puma and YEEZY ". he said in a research note. "The gross margin should also be positive given a favorable comparison in the first quarter (-100 bps), moderating the promotional activity in Europe and the potential for taking possession by the occupation on the likelihood of a higher performance (~ + 3% vs. + 1-2% during FY18) ".
The analyst also said that a challenging promotional and computer environment had weakened since 2017, especially in the United States.
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