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How Did Foot Locker Perform in 3Q16?

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Price movement

Foot Locker (FL) has a market cap of $9.7 billion and rose 0.60% to close at $71.78 per share on November 18, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.35%, 5.5%, and 12.2%, respectively, on the same day.

FL is now trading 4.9% above its 20-day moving average, 6.2% above its 50-day moving average, and 15.8% above its 200-day moving average.

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Related ETF and peers

The Schwab US Mid-Cap ETF (SCHM) invests 0.33% of its holdings in Foot Locker. The YTD price movement of SCHM was 11.5% on November 18.

The market caps of Foot Locker’s competitors are as follows:

  • Wal-Mart Stores (WMT): $211.2 billion
  • DSW (DSW): $1.8 billion

Foot Locker’s fiscal 3Q16 performance

Foot Locker reported fiscal 3Q16 sales of $1.89 billion—a YoY (year-over-year) rise of 5.1%, as compared to sales of $1.79 billion in fiscal 3Q15. The company’s cost of sales as a percentage of sales narrowed 10 basis points YoY in fiscal 3Q16.

Its net income and EPS (earnings per share) rose to $157.0 million and $1.17, respectively, in fiscal 3Q16, as compared to $80.0 million and $0.57, respectively, in fiscal 3Q15. It reported non-GAAP EPS of $1.13 in fiscal 3Q16—a YoY rise of 13.0%.

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FL’s cash and cash equivalents fell 1.5%, and its merchandise inventories rose 1.9% YoY in fiscal 3Q16. Its current ratio rose to 4.6x, and its debt-to-equity ratio fell to 0.40x in fiscal 3Q16, as compared to a current ratio and a debt-to-equity ratio of 3.8x and 0.45x, respectively, in fiscal 3Q15.

Foot Locker declared dividend

Foot Locker has declared a quarterly cash dividend of $0.275 per share on its common stock. The dividend will be paid on January 27, 2017, to shareholders of record on January 13, 2017.

In the next and final part of the series, we’ll look at Tupperware Brands (TUP).

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