Why Foot Locker Stock Fell 12% Out of the Gate Today

Shares of Foot Locker (NYSE: FL), one of the largest sneaker retailers in the world, fell roughly 12% when trading got underway on Nov. 19. The company's premarket third-quarter 2021 earnings release was the main reason, even though the numbers looked decent. There's an important nuance here that appears to have investors worried about the future.

Foot Locker reported third-quarter 2021 sales of nearly $2.2 billion, up 3.9% from the roughly $2.1 billion it pulled in during the third quarter of 2020. The current quarter's sales tally was also 13% above the pre-pandemic third quarter of 2019. Those are solid numbers. On the bottom line, the retailer's adjusted earnings came in at $1.93 per share this year, up from $1.21 in the third quarter of 2020 and $1.13 in 2019. These results, notably, come as Foot Locker continues to adjust its store base, with 2,956 stores at the end of October versus 3,032 a year ago. In addition, the company actually beat Wall Street consensus estimates for both revenue and earnings.

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Source Fool.com