Foot Locker up 5% despite weak sales, guidance hit by tariff concerns
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Foot Locker’s stock surged 5.12% on Thursday, despite reporting mixed fourth-quarter earnings that missed revenue expectations. Investor optimism was driven by stronger-than-expected earnings per share (EPS) and a cautious but stabilizing outlook for 2025. The sneaker retailer posted $2.24 billion in revenue, falling short of analyst projections of $2.32 billion, while adjusted EPS came in at $0.86, exceeding expectations of $0.72. Despite a 4.6% decline in total sales, CEO Mary Dillon reassured investors about the company’s ability to maintain brand momentum amid shifting consumer spending trends.
Guidance for the full year came in weaker than anticipated, with adjusted EPS projected between $1.35 and $1.65, below Wall Street’s expectation of $1.77 per share. The company attributed part of this caution to potential tariff-related headwinds, which could impact both consumer sentiment and supply chain costs. Dillon noted that while spending patterns remain uneven, key activations, product launches, and promotional events continue to attract customers. However, she acknowledged that macro uncertainty and tariff policies could weigh on discretionary spending in 2025, particularly in the first half of the year.
Foot Locker’s stock remains under pressure in the broader market context, down 15% year-to-date and 25% over the past twelve months. The post-earnings rally suggests that investors view the company’s cost-management efforts and strategic activations as mitigating factors against weaker topline performance. Moving forward, market participants will closely watch tariff developments and consumer spending trends to assess Foot Locker’s ability to navigate industry challenges and sustain profitability.
Guidance for the full year came in weaker than anticipated, with adjusted EPS projected between $1.35 and $1.65, below Wall Street’s expectation of $1.77 per share. The company attributed part of this caution to potential tariff-related headwinds, which could impact both consumer sentiment and supply chain costs. Dillon noted that while spending patterns remain uneven, key activations, product launches, and promotional events continue to attract customers. However, she acknowledged that macro uncertainty and tariff policies could weigh on discretionary spending in 2025, particularly in the first half of the year.
Foot Locker’s stock remains under pressure in the broader market context, down 15% year-to-date and 25% over the past twelve months. The post-earnings rally suggests that investors view the company’s cost-management efforts and strategic activations as mitigating factors against weaker topline performance. Moving forward, market participants will closely watch tariff developments and consumer spending trends to assess Foot Locker’s ability to navigate industry challenges and sustain profitability.