Footwear and apparel retailer Foot Locker (NYSE:FL) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Foot Locker beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $1.9 billion, up 1.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Foot Locker a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Foot Locker’s revenue to be flat year on year at $2.01 billion, improving from the 8.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Foot Locker has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Foot Locker’s peers in the apparel and footwear retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Boot Barn delivered year-on-year revenue growth of 13.7%, meeting analysts’ expectations, and Shoe Carnival reported a revenue decline of 4.1%, falling short of estimates by 3%. Boot Barn traded down 19.9% following the results while Shoe Carnival was up 1.2%.
Read our full analysis of Boot Barn’s results here and Shoe Carnival’s results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 9.9% on average over the last month. Foot Locker is up 2.9% during the same time and is heading into earnings with an average analyst price target of $27.65 (compared to the current share price of $25.20).
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