What's Going On With Foot Locker Shares Today?
Portfolio Pulse from Nabaparna Bhattacharya
Foot Locker, Inc. (NYSE:FL) shares are trading lower in the premarket session, following a nearly 15% slump in the past month. Despite beating Q4 FY23 sales and EPS estimates, comparable store sales decreased by 0.7%. The company maintains its long-term earnings potential but expects a two-year delay in achieving its EBIT margin target, now set for 2028. Foot Locker also announced a collaboration with Nike, Inc. (NYSE:NKE) and Jordan Brand on The Clinic program. FY24 sales and EPS forecasts are below consensus estimates.
March 07, 2024 | 1:31 pm
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NEGATIVE IMPACT
Foot Locker shares are trading lower after reporting Q4 results with a slight decrease in comparable store sales and a two-year delay in achieving its EBIT margin target. FY24 forecasts are below consensus.
The decrease in comparable store sales and the delay in achieving the EBIT margin target, combined with lower than expected FY24 forecasts, are likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Nike, Inc. is mentioned in relation to a collaboration with Foot Locker on The Clinic program, aimed at basketball fans, sneaker enthusiasts, and local communities.
The collaboration with Foot Locker on The Clinic program could positively impact Nike's brand visibility and potentially its sales, benefiting the stock in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50