These Analysts Slash Their Forecasts On Foot Locker After Q4 Results
Portfolio Pulse from Avi Kapoor
Foot Locker Inc (NYSE:FL) reported Q4 earnings with a 2% year-on-year sales growth to $2.38 billion, surpassing the $2.28 billion analyst consensus. Adjusted EPS was 38 cents, beating the 32 cents consensus. Despite the upbeat results, FL expects a slower progress towards its EBIT margin target, now aiming for 2028, and forecasts FY24 sales growth of 1% to 3% with adjusted EPS of $1.50 to $1.70, below the consensus of $1.93. Following the report, FL shares dropped 29.4%, and analysts from Telsey Advisory Group, B of A Securities, and Guggenheim adjusted their price targets downwards.
March 07, 2024 | 12:03 pm
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NEGATIVE IMPACT
Foot Locker reported higher than expected Q4 earnings but provided a weaker FY24 outlook, leading to a significant stock price drop and lowered analyst price targets.
The immediate negative reaction in Foot Locker's stock price following the earnings report and the revised analyst price targets suggest a short-term bearish outlook. The company's admission of a delayed progress towards its EBIT margin target and the lower than expected FY24 EPS guidance contribute to the negative sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100