Foot Locker Analysts Cut Their Forecasts After Weak Sales

Foot Locker Inc FL reported weaker-than-expected second-quarter sales.

Foot Locker reported a second-quarter FY23 sales decline of 9.9% year-on-year to $1.86 billion, missing the analyst consensus of $1.88 billion. Adjusted EPS of $0.04 was in-line with the analyst consensus.

Foot Locker lowered FY23 comparable sales guidance from down 7.5%-9% to down 9%-10%. FL slashed FY23 sales guidance from down 6.5%–8% to down 8%-9%. The company cut the Adjusted FY23 EPS outlook from $2.00-$2.25 to $1.30- $1.50 versus the consensus of $2.01.

Foot Locker shares gained 6.3% to trade at $17.69 on Thursday.

These analysts made changes to their price targets on Foot Locker following earnings announcement.

• Telsey Advisory Group lowered the price target on Foot Locker from $36 to $22. Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating.
• Barclays cut the price target on Foot Locker from $31 to $17. Barclays analyst Adrienne Yih maintained an Equal-Weight rating.
• Citigroup lowered the price target on Foot Locker from $26 to $18. Citigroup analyst Paul Lejuez maintained a Neutral rating.

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