Foot Locker Q4 earnings beat estimates: stock is still losing

Foot Locker Inc (NYSE: FL) is down about 8.0% in premarket on Wednesday even though it posted an upbeat Q4 earnings report.

Why is Foot Locker stock down on Wednesday?

Investors are concerned because $FL disappointed in terms of profit guidance. The footwear retail stores company now forecasts its per-share earnings to fall between $1.50 and $1.70 this year.

Analysts, in comparison, were at $1.86 a share. Plus, Mike Baughn - chief financial officer of Foot Locker said in the earnings press release today:

$FL ended its fourth quarter with $297 million in cash and equivalents and $447 million in debt. Wall Street currently has a consensus “hold” rating on Foot Locker stock.

Foot Locker Q4 earnings snapshot

• Lost $389 million that translates to $4.13 per share
• Had $19 million of net income (20 cents a share) last year
• Adjusted EPS printed at 38 cents as per the earnings report
• Total sales popped 2.0% year-on-year to $2.38 billion
• Consensus was 31 cents a share on $2.27 billion in revenue
• Gross margin narrowed by 350 basis points in Q4

Foot Locker Inc narrowed its inventory by another 8.2% in the fourth quarter. CFO Baughn also said on Wednesday: