An Examination Of Foot Locker After Q3 Earnings

I have outlined some positive and negative things to note about Foot Locker as it announced its Q3 earnings.

The strong points are that Foot Locker had an EPS and revenue beat. But other than that there are no signs of turnaround.

In the earnings call, the company mentioned several negative developments which include:

1. a double-digit decline in the women's business

2.  basketball down mid-single digit digits despite strength at the Jordan brand and other Nike models

3. a drop in the men's casual segment, which was strong in the previous quarters

4. lower-than-expected sell-through of adidas in Europe,, which was a great performer in the previous quarters

All this together with negative foot traffic in the Foot Locker US, Foot Locker Europe, Champs and Foot Locker Kids. Of course, not everything was negative, but the positive developments were largely offset by the weakness on several fronts.

The positive signs included:

1. strong performance of several Nike products such as Vapormax and Air Force One;

2. Good results from adidas' Tubular Shadow;

3. Strength in apparel, especially for Nike, adidas and Champion