These Analysts Slash Their Forecasts On Foot Locker After Q4 Results

Foot Locker Inc FL reported upbeat earnings for its fourth quarter on Wednesday.

The company posted fourth-quarter FY23 sales growth of 2% year-on-year to $2.38 billion, beating the analyst consensus estimate of $2.28 billion. Comparable store sales decreased 0.7%. Adjusted EPS of 38 cents beat the analyst consensus of 32 cents, according to data from Benzinga Pro.

Mike Baughn, Executive Vice President and Chief Financial Officer, said, “We maintain conviction in the longer-term earnings potential that our Lace Up plan will generate and reiterate the 8.5-9% EBIT margin target communicated at our March 2023 Investor Day. Given our lower starting point exiting 2023, we expect a two-year delay in achieving that goal and now see reaching that target by 2028.”

Foot Locker sees FY24 comparable sales growth of 1% to 3%. FL expects sales to be -1% to +1%, representing $8.072 billion-$8.236 billion (consensus $8.02 billion). The company expects Adjusted FY24 EPS of $1.50 – $1.70, versus the consensus of $1.93.

Foot Locker shares fell 29.4% to close at $24.24 on Wednesday.

These analysts made changes to their price targets on Foot Locker after the company reported quarterly results.

• Telsey Advisory Group cut the price target on Foot Locker from $38 to $28. Telsey Advisory Group analyst Cristina Fernandez downgraded the stock from Outperform to Market Perform.
• B of A Securities slashed the price target on Foot Locker from $31 to $27. B of A Securities analyst Lorraine Hutchinson maintained a Neutral rating.
• Guggenheim lowered the price target on Foot Locker from $35 to $30. Guggenheim analyst Robert Drbul maintained a Buy rating.

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