Foot Locker FL is gearing up to announce its quarterly earnings on Thursday, 2025-05-29. Here’s a quick overview of what investors should know before the release.
Analysts are estimating that Foot Locker will report an earnings per share (EPS) of $0.41.
The market awaits Foot Locker’s announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It’s important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings History Snapshot
The company’s EPS beat by $0.14 in the last quarter, leading to a 2.3% drop in the share price on the following day.
Here’s a look at Foot Locker’s past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.72 | 0.40 | -0.08 | 0.12 |
| EPS Actual | 0.86 | 0.33 | -0.05 | 0.22 |
| Price Change % | -2.0% | -4.0% | 6.0% | 7.000000000000001% |
Performance of Foot Locker Shares
Shares of Foot Locker were trading at $23.9 as of May 27. Over the last 52-week period, shares are down 8.13%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Insights on Foot Locker
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Foot Locker.
Analysts have provided Foot Locker with 20 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $19.95, suggesting a potential 16.53% downside.
Comparing Ratings with Competitors
The below comparison of the analyst ratings and average 1-year price targets of Buckle, American Eagle Outfitters and Victoria’s Secret, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Buckle, with an average 1-year price target of $41.0, suggesting a potential 71.55% upside.
- Analysts currently favor an Neutral trajectory for American Eagle Outfitters, with an average 1-year price target of $13.29, suggesting a potential 44.39% downside.
- Analysts currently favor an Neutral trajectory for Victoria’s Secret, with an average 1-year price target of $24.18, suggesting a potential 1.17% upside.
Peers Comparative Analysis Summary
In the peer analysis summary, key metrics for Buckle, American Eagle Outfitters and Victoria’s Secret are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Foot Locker | Neutral | -5.70% | $668M | 1.70% |
| Buckle | Neutral | -28.24% | $199.49M | 8.10% |
| American Eagle Outfitters | Neutral | -4.42% | $599.17M | 5.94% |
| Victoria’s Secret | Neutral | 1.10% | $813M | 36.11% |
Key Takeaway:
Foot Locker ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.
Delving into Foot Locker’s Background
Foot Locker Inc operates footwear and apparel retailer in North America, Europe, Australia, New Zealand, and Asia, and has licensed store presence in the Middle East, Europe, and Asia. The company mainly sells athletically inspired shoes and apparel. Foot Locker’s merchandise comes from only a few suppliers, with Nike providing the majority. Its portfolio of brands includes Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. The company has omnichannel capabilities to bridge the digital world and physical stores, including order-in-store, buy online and pickup-in-store, and buy online and ship-from-store, as well as e-commerce. It has three operating segments, North America, EMEA, and Asia Pacific.
Foot Locker’s Economic Impact: An Analysis
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, Foot Locker faced challenges, resulting in a decline of approximately -5.7% in revenue growth as of 31 January, 2025. This signifies a reduction in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Foot Locker’s net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 2.18%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Foot Locker’s ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.7%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Foot Locker’s ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.72%, the company may face hurdles in achieving optimal financial returns.
Debt Management: With a below-average debt-to-equity ratio of 0.96, Foot Locker adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Foot Locker visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
