Foot Locker Expected To Have Earnings Momentum Continue

Foot Locker, Inc. FL experienced its first two weeks of August with a strong start, which has encouraged Citigroup to estimate 3Q gross margins between +100-150bps, while acknowledging the likelihood of SG&A de-leveraging with guidance +$5-10M higher. Citigroup decreases 3Q EPS slightly to $0.l6 (from $0.18) based on negative F/X while 3QE comps are estimated at ~+3%. Citigroup maintains its Buy rating for Fool Locker, Inc., which closed yesterday at $13.12.