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What: Shares of Foot Locker were getting tripped up today, falling as much as 10% after missing EPS estimates in its earnings report.
So what: The athletic-footwear-and-apparel retailer said net income jumped 28% to $0.68 per share thanks to an extra week in the calendar, but adjusting for the extra week and other items, EPS was $0.64, below estimates of $0.72. Sales numbers were strong as overall revenue grew 14% to $1.71 billion, and same-store sales were up 7.9% in the quarter, much higher than the industry average, which generally saw a weak holiday season. Management projected a double-digit percentage increase in adjusted profits from $2.47 in 2013, which could put this year's total above analyst estimates of $2.84.
Now what:Wall Street seems to be playing the earnings game once again, punishing an otherwise strong report for missing estimates. Foot Locker's revenue for the quarter beat expectations, and comparable sales that high are rare to see in retail these days, especially for a stock with an average valuation. If management can deliver on those profit projections, this looks like a good time to buy.
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The article Why Foot Locker Shares Slipped originally appeared on Fool.com.
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