Foot Locker (NYSE:FL) shares fell 2% in pre-market today after Baird analysts lowered the price target for the stock to $27.00 from $35.00, while maintaining a Neutral rating.
The analysts initiated a short-term bearish trading call through November, citing increased near-term risks despite the stock’s 9% rise since July. The recent optimism, fueled by improvements in full-priced sales and potential long-term margin recovery, contrasts with signs of volatility in sales performance, particularly weak September indicators following a stronger back-to-school season. Additional uncertainties include a shorter holiday shopping season this year and potential marketplace adjustments linked to Nike’s upcoming leadership change.
The analysts cautioned that these factors could push Foot Locker’s stock down toward the low $20s in the near term, applying a reduced forward P/E ratio of 12.5-13X to revised estimates, signaling a less favorable short-term outlook.
Symbol | Price | %chg |
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9983.T | 44900 | 0 |
TRENT.NS | 5562.85 | 0 |
TRENT.BO | 5561.25 | 0 |
BABY.JK | 298 | 0 |
Foot Locker (NYSE:FL) saw its shares climb over 5% intra-day today after the footwear retailer reported fourth-quarter fiscal 2025 results that exceeded earnings and comparable sales expectations. Despite a revenue shortfall, the company’s improved profitability and positive sales momentum bolstered investor confidence.
The retailer posted adjusted earnings per share (EPS) of $0.86, beating analyst projections of $0.72. While total revenue came in at $2.24 billion—falling short of the expected $2.32 billion—comparable sales rose 2.6%, surpassing the anticipated 2.25% increase.
A key highlight of the quarter was a 300-basis-point expansion in gross margin, reflecting the company’s focus on operational efficiencies and strategic investments. Foot Locker credited these gains to its ongoing turnaround efforts under the Lace Up Plan, which has been driving improved sales and profitability.
Looking ahead to fiscal year 2026, Foot Locker anticipates earnings per share between $1.35 and $1.65, below the consensus estimate of $1.71. Sales are expected to range from a slight 1% decline to a modest 0.5% increase, while comparable sales are projected to grow between 1% and 2.5%, compared to analyst expectations of 2.02% growth.
Foot Locker, Inc. (NYSE: FL) is a leading global retailer specializing in athletic footwear and apparel. The company operates various store formats, including Foot Locker, Kids Foot Locker, and Champs Sports, among others. Foot Locker competes with other major retailers like Nike and Adidas, which also have a strong presence in the athletic retail market.
On March 5, 2025, Foot Locker reported earnings per share (EPS) of $0.86, surpassing the estimated $0.73. However, the company generated revenue of $2.24 billion, slightly below the expected $2.32 billion. Despite the positive EPS, the revenue shortfall has raised concerns among investors, especially given the company's recent fiscal 2026 earnings guidance that fell short of expectations.
Foot Locker's stock has experienced fluctuations due to the disappointing fiscal 2026 earnings guidance, as highlighted by Barrons. The company's sales performance and future earnings outlook have been softer than anticipated, contributing to the stock's volatility. The holiday season results were mixed, and the company warned that profits might be under pressure in the coming year.
The company's performance is also affected by its largest brand partner, Nike, which is using discounts to clear out stale inventory. This strategy indicates ongoing challenges within the sneaker industry, suggesting potential difficulties for both Foot Locker and Nike. Despite these challenges, Foot Locker achieved a gross margin expansion of 300 basis points compared to the previous year.
Foot Locker completed 160 store refreshes during the quarter, bringing the total to over 400 for the year. The company has focused on enhancing the in-store experience, improving digital capabilities, and expanding customer engagement through the FLX Rewards Program. Foot Locker maintains a current ratio of 1.67, indicating a good level of liquidity to cover short-term liabilities.
Foot Locker (NYSE:FL) is gearing up for its earnings report release on December 4, 2024. Analysts predict an earnings per share (EPS) of $0.42 and project quarterly revenue to be around $2 billion. This announcement, scheduled before the market opens, will provide insights into Foot Locker's financial performance and operational strategies.
Foot Locker is expanding its "Home Court" basketball sections in collaboration with Nike, aiming to strengthen their partnership. This initiative, as highlighted by Bloomberg News, involves introducing digital wallets in 100 stores globally by 2026, allowing customers to test sneaker performance. This move is expected to positively impact Foot Locker's sales, especially with Nike increasing product allocations starting in the fourth quarter of 2024.
Analyst Tom Nikic from Needham has given Foot Locker a Buy rating with a price target of $27, anticipating an earnings recovery in 2025. This optimism is based on the renewed partnership with Nike, growth in non-Nike brands, and improved merchandise margins. Despite a temporary slowdown post back-to-school season, trends are expected to improve after Thanksgiving, supported by strong holiday interest in sneakers.
Foot Locker's financial metrics reveal a price-to-sales ratio of 0.28, indicating a market value lower than its annual sales. The enterprise value to sales ratio is 0.61, suggesting a valuation slightly more than half of its sales. With a debt-to-equity ratio of 0.15, Foot Locker maintains a low level of debt, and a current ratio of 1.66 indicates good liquidity to cover short-term liabilities.
Foot Locker (NYSE:FL) is a globally recognized retailer specializing in athletic footwear and apparel, featuring products from major brands like Nike and Adidas. Competing with other retailers such as Finish Line and Dick's Sporting Goods, Foot Locker is under the spotlight as Sam Poser from Williams Trading sets a price target of $21 for FL, significantly lower than its current price of $25.34, indicating a potential decrease of about -17.11%.
Foot Locker is poised to report a year-over-year increase in earnings for the quarter ending October 2024, driven by higher revenues. The eagerly awaited earnings report, scheduled for December 4, 2024, is anticipated to reveal quarterly earnings of $0.39 per share. The actual results could have a substantial impact on the stock's price, as a positive earnings surprise might propel the stock upwards, while a miss could trigger a decline.
Currently, FL's stock is trading at $25.31, marking a 3.39% increase today, which translates to a rise of $0.83. The stock has fluctuated between a low of $24.55 and a high of $25.57 today. Over the past year, FL has experienced a high of $35.60 and a low of $20.47, showcasing some volatility in its price movements.
With a market capitalization of approximately $2.4 billion and a trading volume of 3,824,036 shares, Foot Locker's immediate price changes and future earnings expectations will largely hinge on the management's discussion of business conditions during the upcoming earnings call. This discussion will offer insights into the company's strategies and potential challenges it may face.
Foot Locker (NYSE:FL) reported a smaller-than-expected loss for the second quarter of 2024, with sales marginally exceeding expectations, though its shares tumbled over 16% intra-day.
The athletic footwear and apparel retailer posted an adjusted loss of $0.05 per share for the quarter, outperforming analyst forecasts, which had projected a loss of $0.08 per share. Revenue for the period rose by 1.9% year-over-year to $1.9 billion, narrowly surpassing the Street estimate of $1.89 billion.
Comparable sales showed a 2.6% increase, driven by a 5.2% growth in global Foot Locker and Kids Foot Locker stores. Additionally, the company's gross margin improved by 50 basis points year-over-year, landing between 29.5% and 29.7%.
Foot Locker's President and CEO, Mary Dillon, highlighted the success of their "Lace Up Plan," which she said is evident through the company's return to positive sales growth and margin expansion in the second quarter.
Looking ahead, Foot Locker reaffirmed its full-year 2024 adjusted earnings guidance, projecting an EPS range of $1.50 to $1.70. This outlook includes a $0.09 impact from a non-recurring charge related to the FLX Rewards Program. The company anticipates comparable sales growth of 1% to 3% for the entire year.
In addition to its financial results, Foot Locker revealed plans to streamline its global operations, including the closure of stores in South Korea, Denmark, Norway, and Sweden. The company also announced a relocation of its global headquarters to St. Petersburg, Florida, expected by late 2025, as part of its strategic realignment.
Foot Locker, Inc. (FL), a prominent name on the New York Stock Exchange (NYSE), has embarked on an ambitious journey to revitalize its brand and retail strategy with the introduction of its "store of the future" concept. This innovative approach, announced on April 24, 2024, and covered by CNBC, aims to transform the shopping experience for its customers by revamping 900 stores over the next two years. This strategic move is not just about aesthetic upgrades but is a significant pivot in how Foot Locker intends to interact with its market and respond to the changing dynamics of retail shopping.
The financial implications of such a massive overhaul are evident in Foot Locker's stock performance. As of the latest trading session, FL's stock price stood at $21.98, experiencing a modest increase of $0.05 or 0.228%. This slight uptick reflects the market's initial reaction to Foot Locker's announcement, suggesting a cautious but optimistic outlook from investors. The stock's performance, fluctuating between a low of $21.63 and a high of $22.425 during the session, indicates the market's assessment of the company's short-term prospects amidst its strategic transformations.
Over the past year, Foot Locker's shares have seen significant volatility, with prices ranging from a low of $14.84 to a high of $42.79. This volatility underscores the challenges the company has faced in a rapidly evolving retail landscape, marked by shifts in consumer behavior and the increasing importance of digital commerce. The "store of the future" concept appears to be Foot Locker's answer to these challenges, aiming to blend the physical and digital shopping experiences in a way that revitalizes its brand and attracts customers.
With a market capitalization of approximately $2.08 billion and a trading volume of 1,772,003 shares, Foot Locker's financial health and investor interest are closely watched metrics. The company's decision to invest in the transformation of 900 stores is a bold move that signals confidence in its long-term strategy and its ability to adapt to market demands. This strategic initiative, if successful, could redefine Foot Locker's position in the retail sector and potentially lead to a more stable and upward trajectory for its stock price.
In summary, Foot Locker's "store of the future" concept represents a pivotal moment in the company's history. By reimagining its retail presence, Foot Locker is not just changing the layout of its stores but is also adapting its business model to meet the future head-on. As the company embarks on this transformation, investors and market watchers will be keenly observing the impact of these changes on its financial performance and stock market standing.