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Here's How Foot Locker (FL) is Poised Ahead of Q1 Earnings
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We expect Foot Locker, Inc. (FL - Free Report) to register year-over-year growth in its top and the bottom line when it releases first-quarter fiscal 2021 results on May 21. Incidentally, the Zacks Consensus Estimate for the quarterly earnings currently stands at $1.06, which suggests a significant rebound from a loss of 67 cents a share incurred in the year-ago quarter. Moreover, the consensus mark has increased a penny over the past 30 days.
However, a glance at this athletic shoes and apparel retailer’s performance over the trailing four quarters shows that it witnessed a negative earnings surprise of 43.9%, on average.
Nonetheless, the consensus estimate for quarterly revenues is currently pegged at $1,912 million, indicating an improvement of about 62% from the year-ago quarter’s reported number.
Key Factors to Note
Foot Locker has been investing in digital platforms, improving supply chain efficiencies and effectively managing inventory for a while now. This New York-based company is steadily boosting its e-commerce platform and expanding direct-to-consumer operations. In fact, it is consistently enhancing its omni-channel experience via activating a Shop My Store feature on its website. We note that the company’s basketball footwear category is experiencing a strong momentum.
In addition, Foot Locker is gaining from its International expansion. We note that the company has been witnessing a sturdy advancement in the Asia Pacific, fueled by growth in Australia and New Zealand as well as a continued progress across the region. Moreover, the company is progressing well with its FLX membership program. Further, the retailer is benefiting from its partnerships. All these factors coupled with brand strength are likely to have boosted Foot Locker’s performance in the quarter to be reported.
On its last earnings call on Feb 26, management had projected less promotional pressure on the company’s merchandise margins on a year-over-year basis with respect to first-quarter gross margin. This forecast does not consider rent abatements. However, freight costs markedly remain a headwind. In relation to SG&A, management had anticipated higher PPE costs for the quarter under review as virtually there were no PPE costs involved last year.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Foot Locker this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Foot Locker currently has a Zacks Rank #2 and an Earnings ESP of +4.72%.
More Stocks With Favorable Combination
Here are a few other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:
Dollar General (DG - Free Report) presently has an Earnings ESP of +1.27% and a Zacks Rank #3.
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3 at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Here's How Foot Locker (FL) is Poised Ahead of Q1 Earnings
We expect Foot Locker, Inc. (FL - Free Report) to register year-over-year growth in its top and the bottom line when it releases first-quarter fiscal 2021 results on May 21. Incidentally, the Zacks Consensus Estimate for the quarterly earnings currently stands at $1.06, which suggests a significant rebound from a loss of 67 cents a share incurred in the year-ago quarter. Moreover, the consensus mark has increased a penny over the past 30 days.
However, a glance at this athletic shoes and apparel retailer’s performance over the trailing four quarters shows that it witnessed a negative earnings surprise of 43.9%, on average.
Nonetheless, the consensus estimate for quarterly revenues is currently pegged at $1,912 million, indicating an improvement of about 62% from the year-ago quarter’s reported number.
Key Factors to Note
Foot Locker has been investing in digital platforms, improving supply chain efficiencies and effectively managing inventory for a while now. This New York-based company is steadily boosting its e-commerce platform and expanding direct-to-consumer operations. In fact, it is consistently enhancing its omni-channel experience via activating a Shop My Store feature on its website. We note that the company’s basketball footwear category is experiencing a strong momentum.
In addition, Foot Locker is gaining from its International expansion. We note that the company has been witnessing a sturdy advancement in the Asia Pacific, fueled by growth in Australia and New Zealand as well as a continued progress across the region. Moreover, the company is progressing well with its FLX membership program. Further, the retailer is benefiting from its partnerships. All these factors coupled with brand strength are likely to have boosted Foot Locker’s performance in the quarter to be reported.
On its last earnings call on Feb 26, management had projected less promotional pressure on the company’s merchandise margins on a year-over-year basis with respect to first-quarter gross margin. This forecast does not consider rent abatements. However, freight costs markedly remain a headwind. In relation to SG&A, management had anticipated higher PPE costs for the quarter under review as virtually there were no PPE costs involved last year.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Foot Locker this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Foot Locker, Inc. Price and EPS Surprise
Foot Locker, Inc. price-eps-surprise | Foot Locker, Inc. Quote
Foot Locker currently has a Zacks Rank #2 and an Earnings ESP of +4.72%.
More Stocks With Favorable Combination
Here are a few other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +43.82% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General (DG - Free Report) presently has an Earnings ESP of +1.27% and a Zacks Rank #3.
Dollar Tree (DLTR - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3 at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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