Why Athletic Retailer Foot Locker's Shares Are Plunging Today?
Portfolio Pulse from Shivani Kumaresan
Foot Locker Inc's (NYSE:FL) shares have dropped by over 30% following its Q2 results and lowered 2023 sales and earnings guidance. The company reported a 9.9% YoY sales decline to $1.86 billion, missing the analyst consensus of $1.88 billion. The company is also pausing its dividend to enhance flexibility. Foot Locker has also cut its FY23 sales guidance from down 6.5%-8% to down 8%-9% and its FY23 gross margin guidance from 28.6%-28.8% to 27.8%-28%.
August 23, 2023 | 11:53 am
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Foot Locker's shares have dropped significantly due to disappointing Q2 results and lowered future guidance. The pause on dividends may also negatively impact investor sentiment.
Foot Locker's Q2 results were below expectations, with a significant YoY sales decline. The company also lowered its 2023 sales and earnings guidance, which likely contributed to the drop in share price. The decision to pause dividends could further discourage investors, leading to a potential further decrease in share price.
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