Wedbush Reiterates OW Rating On FL

Foot Locker, Inc. FL reported Q4 EPS of $0.39 “vs. our $0.37 estimate and consensus at $0.36,” Wedbush reports. “A solid comp (+7.3% vs. our 6.5% estimate and cons. of 5%), strong gross margin expansion (+214bps vs. our +204bps estimate), and tight expense controls (50bps of leverage vs. our flat estimate) all contributed to the beat.

“Looking to 2011, we believe the continuation of the athletic cycle, coupled with gross margin gains in apparel and tight expense controls, will continue to support EPS growth. We reiterate our Outperform rating.”

Foot Locker currently trades at $19.59.