Foot Locker soars as Q3 earnings and revenue beat estimates

Foot Locker (FL.US) stock rose sharply on Friday after the apparel and footwear retailer reported better than expected quarterly figures and lifted its full-year financial guidance due to unexpected rise in comparable store sales.

• Company earned p $1.27 per share, well above analysts’ estimates of $1.11 that Wall Street  

• Revenue fell 0.7% to $2.17 billion but topped market expectations  of $2.09 billion

• Same-store sales jumped 0.8% YoY, while analysts expected a 6% decline

• Foot Locker lifted its financial outlook. Full-year sales are expected to decline 4% to 5%, compared to previous forecasts of a 6% to 7% decline. The EPS range is $4.42 to $4.50, compared to $4.25 to $4.45. 

• “While the macroeconomic environment remains uncertain, our demand trends and inventory position in high-quality products gives us confidence we can achieve our new range,” said Chief Financial Officer Andrew Page.

Foot Locker (FL.US) stock briefly rose nearly 18.0% during today's session, however buyers failed to uphold momentum in the evening and a large chunk of gains have been erased. Pullback occurred after as bulls did not manage to break above key resistance at $39.10, which is marked with previous price reactions, long-term downward trendline and 50.05 Fibonacci retracement of the upward wave launched in March 2020. Nearest support to watch lies at $32.90 and coincides with 61.8% retracement. Source: xStation5