Foot Locker shares are trading lower after the company reported a Q2 revenue miss and an 11% rise in inventories. The company also lowered its gross margin guidance, citing more aggressive markdowns.
Portfolio Pulse from Benzinga Newsdesk
Foot Locker reported a Q2 revenue miss and an 11% rise in inventories, leading to a drop in its share price. The company also lowered its gross margin guidance due to more aggressive markdowns.
August 23, 2023 | 10:49 am
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NEGATIVE IMPACT
Foot Locker's Q2 revenue miss and increased inventories have negatively impacted its share price. The company's decision to lower its gross margin guidance could further depress the stock.
Foot Locker's Q2 revenue miss indicates weaker than expected sales, which is a negative signal to investors. The rise in inventories could suggest overstocking or decreased demand, both of which are negative for the stock. The lowered gross margin guidance suggests the company expects lower profitability, which could further depress the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100