Foot Locker (FL) is stepping up its game and investors are taking notice. The company’s shares surged more than 14% on Thursday after CEO Mary Dillon described the first quarter as “a solid start to the year.”
Despite a 1.8% drop in same-store sales, Foot Locker outperformed Wall Street expectations. The company reported revenue of $1.88 billion, slightly below the $1.89 billion forecast, but its adjusted earnings per share of $0.22 beat the estimated $0.12.
Foot Locker reaffirmed its 2024 guidance, with expectations of same-store sales growth between 1% to 3% and overall sales ranging from a 1% decline to a 1% gain. The company also anticipates full-year EPS between $1.50 and $1.70.
The company’s efforts to enhance its digital business, store experience, and loyalty programs seem to be paying off. Foot Locker has been working on new store remodels and plans to refresh two-thirds of its global Foot Locker and Kids Foot Locker locations in the coming years.
Additionally, the company’s loyalty program, FLX Rewards, is set to launch in Q2 after successful testing. Analysts believe this program will provide valuable consumer insights and help Foot Locker become a modern, omni-channel retailer.
Overall, Foot Locker’s positive earnings report and strategic initiatives have instilled confidence in investors, leading to a significant jump in its stock price. As the company continues to focus on enhancing the customer experience and driving growth, it remains a key player in the retail industry to watch.