Footwear and apparel retailer Foot Locker (NYSE: FL) will be reporting results tomorrow before market open. Here’s what to expect.
Foot Locker missed analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $2.25 billion, down 5.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.
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 decline 2.3% year on year to $1.84 billion, in line with the 2.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 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 four times over the last two years.
Looking at Foot Locker’s peers in the apparel and footwear retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Boot Barn delivered year-on-year revenue growth of 16.8%, missing analysts’ expectations by 0.9%, and Urban Outfitters reported revenues up 10.7%, topping estimates by 2.5%. Boot Barn traded up 16.5% following the results while Urban Outfitters was also up 23%.
Read our full analysis of Boot Barn’s results here and Urban Outfitters’s results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 11.4% on average over the last month. Foot Locker is up 87.1% during the same time and is heading into earnings with an average analyst price target of $21.47 (compared to the current share price of $23.93).
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