Foot Locker's Stock Plunges 3.81% Amid Sales Decline, Store Closures

Foot Locker's (FL) stock price plummeted 3.81% today, marking its third consecutive day of decline, with a total drop of 16.72% over the past three days. The share price fell to its lowest level since December 2009, with an intraday decline of 6.18%.

Foot Locker's recent financial performance has been a significant factor in the decline of its stock price. The company reported a decline in total sales by over 2% in 2024, which was attributed to approximately 113 net store closures and the impact of foreign currency fluctuations. This decline in sales has raised concerns among investors about the company's ability to maintain its market position and profitability.

Analysts have also played a role in the recent decline of Foot Locker's stock price. Piper Sandler lowered their price target for the company from $19.00 to $12.00 and set a "neutral" rating, which contributed to a gap down in Foot Locker's shares prior to trading. Similarly, Evercore ISI reduced Foot Locker's price target from $22.00 to $15.00, reflecting a less optimistic outlook for the company's financial performance. These downgrades have further eroded investor confidence in the company's prospects.

In addition to these factors, Foot Locker announced plans to close 400 stores as part of a new 3-year strategic plan introduced by the CEO. While this move is intended to streamline operations and improve profitability, it has also raised concerns about the potential impact on the company's revenue and customer base. The mixed implications of this strategic plan have added to the uncertainty surrounding Foot Locker's future performance, contributing to the recent decline in its stock price.