The Foot Locker (FL) share price rose by close to 15% on Thursday as investors showed faith in its start to 2024. This followed a rocky start to the year for the shares, which had lost 27% in the year to date.
Foot Locker Share Price Jumps After A Solid Q1
The footwear and sportswear retail giant is working on a strategic plan called the Lace Up Plan that brings together different stands of its business, such as the digital side and the in-store experience, as well as its loyalty incentives and brand building.
Mary Dillon, Foot Locker’s CEO, said that the firm’s Q1 results represented “a solid start to the year”. Among the results, same-store sales dropped by 1.8%, which was better than the 1.93% fall that had been anticipated.
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FL revenue for Q1 was $1.88bn, slightly below the $1.89bn that had been expected. The adjusted earnings per share figure of $0.22 was higher than the $0.12 that had been expected.
Looking at the expected full-year results for 2024, FL expects to see between 1% and 3% growth in same-store sales. It also predicts overall sales for the year to be in the range between a 1% improvement and a 1% decline. The earnings per share for the full year should work out at somewhere between $1.50 and $1.70.
Dillon pointed out that they are “very encouraged by the pipeline of innovation that was shared beginning with the Paris Olympics and into the back half of 2024 and then 2025”.
