|Bid||28.81 x 800|
|Ask||28.83 x 800|
|Day's Range||28.58 - 29.94|
|52 Week Range||17.46 - 47.86|
|Beta (5Y Monthly)||1.29|
|PE Ratio (TTM)||6.41|
|Earnings Date||Aug 21, 2020 - Aug 25, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 16, 2020|
|1y Target Est||28.90|
(Bloomberg) -- Across the U.S., sales are cratering, bankruptcies are on the rise, and unemployment has hit unprecedented levels. With consumers glued to the couch watching Netflix or commiserating over Zoom, retailers have been especially hard hit. Yet even as the coronavirus pandemic wreaks havoc on American malls and main streets, a billionaire from Prague sees something in the wreckage: bargains.On May 11, Vesa Equity Investment, a private equity firm controlled by Daniel Kretinsky, a 44-year-old investor little known outside of finance circles, disclosed it had acquired a 5% stake in Macy’s Inc., the troubled department store chain that has seen its stock nose-dive by more than half this year. Then on May 18, Vesa said it had bought 6% of sneaker-seller Foot Locker Inc., whose shares are off by a quarter. In a filing with the Securities and Exchange Commission, Vesa said it planned to “engage in constructive discussions” with Macy’s. While analysts pondered what that might entail, some had a more fundamental question: Who is this guy?“I had to look him up,” says David Swartz, an analyst with Morningstar Inc. who covers retailers. “I’d never heard of him.”Over the last few years, Kretinsky has emerged as a contrarian financier with a taste for industries others avoid, assembling an eclectic portfolio ranging from power plants and supermarkets to media companies and even the U.K.’s privatized Royal Mail Plc. The strategy has paid off: In the last three weeks, Kretinsky’s net worth has climbed by $100 million, according to the Bloomberg Billionaires Index.World’s Richest Spend $1 Billion on ‘Bargains of a Lifetime’Kretinsky can come across as a cold-eyed capitalist unafraid to challenge boards of companies in his portfolio and invest in unfashionable assets such as coal. Yet he also casts himself as a steward of liberal values and independent debate as owner of Czech newspapers and French media properties, including a minority stake in Le Monde, the prestigious Paris daily.He rarely speaks publicly and grants few interviews to explain his approach, prompting a Polish magazine to dub him the “Czech Sphinx.” Kretinsky, who tested positive for coronavirus in March and worked from home as he recovered from what he said felt like a light cold, declined to comment for this article.While his eye for value has helped Kretinsky build a $1.8 billion fortune, he’s also suffered setbacks. The journalists at Le Monde have bristled at the ownership of a tycoon who made his money in fossil fuels. And in 2019, the board of the German retailer Metro AG rejected his $6.5 billion takeover bid. Rather than publicly assail Metro’s management as many activist shareholders might have done, Kretinsky opted to bide his time. He upped his stake in the German company to 29.9% and asked for a board seat, promising to contribute ideas for improving profitability. Despite that manifest patience, opponents shouldn’t underestimate Kretinsky’s ambition, says Josef Kotrba, head of accounting firm Deloitte’s Prague office.“He’s this soft-spoken, elegant man, and unlike many of his peers, kind of friendly,” says Kotrba, whose office has done work for Kretinsky’s businesses. “You wouldn’t guess he’s a shark.”Kretinsky got his start in 1999 as a lawyer at Czech private bank J&T, where he earned about $900 a month. Ten years later, he formed his own outfit, EPH, with the backing of partners from J&T and Czech billionaire Petr Kellner, and zeroed in on an energy sector beaten down by the global financial crash. As the European Union sought to phase out fossil fuels, Kretinsky wagered it would take a long time to wean the region off carbon. So he acquired natural gas pipelines and power plants that burn coal, including lignite, an especially dirty form of the fuel. That paid off as those plants continued to operate. EPH has since moved into renewable energy, logistics, and real estate, and today it comprises 70 companies in almost a dozen countries in Europe, with assets valued at 13.3 billion euros ($14.6 billion).“We want to make money in industries that are dying because we think they’ll die much more slowly than the general consensus says,” Kretinsky told university students during a 2015 speech in Prague. “Going with the crowd and following trends is always a mistake.”By 2017, Kretinsky had decided to invest his growing personal fortune outside the energy sector. So he joined forces with Patrik Tkac, the chairman of J&T Banka, to form Vesa, with Kretinsky holding a 53% stake. These days, he’s clearly not following the herd. With stalwarts such as J.C. Penney Company Inc. and Neiman Marcus Group Inc. declaring bankruptcy this month, analysts say a reckoning is at hand for department stores long threatened by Amazon.com Inc. and the decline of the indoor shopping mall.Even before the pandemic forced Macy’s to close its 775 locations in mid-March, it was struggling to turn a profit and had embarked on a plan to shutter 125 underperforming outlets and boost digital sales. On May 21, the biggest U.S. department store chain, with sales of $25 billion last year, gave a preview of the damage to come, telling investors to expect a $1.1 billion loss in operating income in the first quarter. Foot Locker has been similarly battered and on May 22 reported it lost $98 million in the first quarter, versus net income of $172 million in the same period in 2019.With both chains starting to reopen, investors will be watching to see how business rebounds in an era of social distancing and anxiety. “What does a store have to do to make you comfortable?” says Sam Poser, an analyst with Susquehanna Financial Group in New York who covers the apparel industry. “There are so many questions yet to be answered.”Kretinsky has long sought to expand in the U.S., and his decision to buy into the two companies is consistent with his ongoing shift from energy to retail; In addition to his stake in Metro, he is the No. 2 stockholder in French supermarket chain Casino Guichard-Perrachon SA, with a 7% stake.Still, given the uncertainty around reopening the U.S. economy, even people who’ve long known Kretinsky were taken aback by his decision.“It is quite surprising, but I am sure there’s more to it than just widening his portfolio,” says Michal Snobr, a Czech investor who used to work with Kretinsky at J&T. “It may be a bet on some future development, like when he bought assets in Germany that everyone dismissed but have turned out to be a great investment.”In any event, Kretinsky is now a top five shareholder in two of the most famous brands in American retail. Foot Locker, with sales clerks dressed like zebra-shirted referees, has been a staple of malls for more than 40 years. And the Macy’s Thanksgiving Day Parade, with its gigantic inflatable cartoon characters floating through Manhattan toward its flagship store on Herald Square, has been an autumnal ritual since 1924.In the short term, at least, Kretinsky’s timing is on target. After falling off a cliff in early March, shares of both companies have stabilized in the last month. The Czech billionaire is betting the worst is over.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Foot Locker faces a number of challenges in the wake of the coronavirus pandemic, including a focus on shoes and store locations in malls, analysts say.
Shares of Crocs (NASDAQ: CROX), Coty (NYSE: COTY), and Foot Locker (NYSE: FL), an assortment of retailers, jumped 10% or higher Tuesday morning as the markets received positive news about consumer sentiment and COVID-19 vaccines. Retailers got a little spark of hope Tuesday when U.S. consumer confidence moved slightly higher in May, suggesting the worst of the economic impact could be behind us as more states open up parts of the economy and reduce restrictions. Consumer confidence moved to 86.6 in May, up from the downwardly revised 85.7 recorded in April.
The U.S. death toll from the coronavirus that causes COVID-19 edged closer to 100,000 on Friday, as the news emerged that the Centers for Disease Control and Prevention has been combining the results of two different types of tests for the illness in a move that has been sharply criticized by health experts.
Not only was Best Buy a stronger company heading into the crisis, but its relative strength over Foot Locker is also only likely to accelerate in the months and years ahead. Both companies reported their first-quarter results last week, illustrating the key differences in their business models, sensitivity to stay-at-home orders, and giving a sneak peak into why Best Buy is the more solid pick of the two. During the May quarter, in which Best Buy, Foot Locker, and other retailers were forced to shut their doors to customers, Best Buy's business resilience was clearly on display.
Dividend announcements were mixed this past week for large companies, reflecting the divergent capital-allocation policies as companies try to preserve their cash during the coronavirus pandemic.
The latest in a growing set of examples is athletic apparel and sneaker specialist Foot Locker (NYSE: FL), the stock price of which dived after the company posted its Q1 fiscal 2020 results on Friday. For the quarter, Foot Locker's sales came in at just under $1.18 billion, down a steep 43% from the same period last year. Although Foot Locker has been reopening stores as permitted lately, the shutdowns engendered by the SARS-CoV-2 coronavirus outbreak badly affected the company.
Disappointing first-quarter results are hitting the stock price, but Foot Locker's long-term story remains intact.
Foot Locker reported a bigger-than-expected first-quarter loss and revenue decline amid coronavirus shutdowns.
Foot Locker stock is sharply down on Friday on worse-than-expected earnings. Here's how to trade the stock as it approaches potential support.
Good morning, ladies and gentlemen, and welcome to Foot Locker's First Quarter 2020 Financial Results Conference Call. This conference may contain forward-looking statements that reflect management's current views of future events and financial performance. Management undertakes no obligation to update these forward-looking statements, which are based on many assumptions and factors, including the impact of COVID-19, effects of currency fluctuations, customer preferences, economic and market conditions worldwide, and other risks and uncertainties described more fully in the company's press release and in reports filed with the SEC, including the most recently filed Form 10-K and Form 10-Q. Any changes in such assumptions or factors could produce significantly different results and actual results may differ materially from those contained in the forward-looking statements.
The weekly 5/22 27-strike put is running the show today
Mainland China appears to be turning toward Hong Kong's economic prowess to help the country recover from the lockdown measures that took a hammer to China's GDP over the past several months.
Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Jared Blikre break down Deere & Co. and Foot Locker earnings.
Sales at stores open at least a year fell 42.8% in the quarter. Management suspended the dividend as it seeks to conserve cash.
Foot Locker (FL) delivered earnings and revenue surprises of -294.12% and -10.59%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
Foot Locker (FL) has reported disappointing first quarter results, causing shares to pullback 6% in Friday’s pre-market trading. First quarter non-GAAP EPS of -$0.67 missed Street estimates by $0.44 while GAAP EPS of -$0.93 fell short of expectations by $0.74.Notably revenue for the athletic retailer of $1.18B plunged 43% year-over-year and fell $130M below consensus estimates. The company’s gross margin rate decreased to 23% from 33.2% a year ago and the SG&A expense rate increased to 26.9% from 20% in the first quarter of 2019. Foot Locker cited Covid-19 related store closures as behind the significant decline in sales.“We have taken full advantage of the investments we have made in technology in recent years in order to stay connected with our customers and serve them online, worked aggressively to protect our financial position and flexibility, and taken actions to ensure we are well positioned to drive our business forward,” said Richard Johnson, CEO of Foot Locker.These actions include borrowing $330 million under the company’s $400 million credit facility; limiting capital expenditures to essential projects and reducing the 2020 capital expenditure forecast by 50% to $138 million; minimizing non-essential spending; and reducing salaries for the CEO and senior executives.Additionally, the board decided to temporarily suspend the cash dividend beginning with the 2Q payment- and has already suspended its share repurchase program.Susquehanna analyst Sam Poser recently reiterated his hold rating on the stock, while ramping up his price target. “We are raising our price target from $20 to $28 due to the cost-cutting initiatives, which we believe will benefit FL over the long-term. Our $28 price target reflects a P/E of 5.7x our FY21 EPS estimate, up from our prior multiple of 4.1x” he explained.The much lower than average FY2 multiple remains, says Poser, due to uncertainty around both the timing of mall reopenings and the degree to which consumers will return to malls. Although FL’s e-commerce business is expected to improve, FY19 e-commerce sales only represented ~16% total revenue. “It’s unclear if FL’s digital sales will increase rapidly enough to offset weak store traffic” Poser concludes.Overall the stock shows a Moderate Buy analyst consensus, with 6 buy ratings offset by 7 hold ratings. The average analyst price target stands at $32 (10% upside potential). Shares are trading down 25% on a year-to-date basis. (See FL stock analysis on TipRanks)Related News: Nvidia Sinks Despite Stellar Earnings; Top Analyst Says Buy On Any Weakness Starbucks Regains Almost Two-Thirds Of U.S. Same-Store Sales As Stores Reopen Shopify Reveals Multiple New Features At Virtual Reunite Event, Stock Now Up 95% YTD More recent articles from Smarter Analyst: * Pfizer Loses 6% On Disappointing Ibrance Breast Cancer Outcome * BioMarin Provides Positive Gene Therapy Update For Severe Hemophilia A * China’s Tencent In Talks To Buy $200 Million Stake In Warner Music - Report * Quest’s Covid-19 Self-Collection Test Kit Gets FDA Nod For Emergency Use
Shares of Foot Locker (NYSE:FL) fell 1.5% in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share fell 143.79% over the past year to ($0.67), which may not compare to the estimate of $0.49.Revenue of $1,176,000,000 decreased by 43.41% year over year, which missed the estimate of $1,580,000,000.Guidance Earnings guidance hasn't been issued by the company for now.Foot Locker hasn't issued any revenue guidance for the time being.Conference Call Details Date: May 22, 2020View more earnings on FLTime: 09:00 AMET Webcast URL: https://78449.choruscall.com/dataconf/productusers/fl/mediaframe/37006/indexr.htmlPrice Action 52-week high: $56.4352-week low: $17.46Price action over last quarter: down 18.32%Company Overview Foot Locker operates thousands of retail stores throughout the United States, Canada, Europe, Australia, and New Zealand. It also has one franchisee in the Middle East and one in South Korea, each of which operates multiple stores in those regions. The company mainly sells athletically inspired shoes and apparel. Foot Locker's merchandise comes from only a few suppliers, with Nike providing the majority. Store names include Foot Locker, Champs, and Runners Point. The company also has an e-commerce business selling through Footlocker.com, Eastbay, and Final-Score.See more from Benzinga * A Look Into Foot Locker's Price Over Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
NEW YORK, NY / ACCESSWIRE / May 22, 2020 / Foot Locker, Inc. (NYSE:FL) will be discussing their earnings results in their 2020 First Quarter Earnings call to be held on May 22, 2020 at 9:00 AM Eastern ...