Foot Locker's Path to Recovery - Analysts Adjust Forecasts Amid Uncertain Road to Long-Term Growth
Portfolio Pulse from Shivani Kumaresan
Foot Locker Inc (NYSE:FL) reported Q4 FY23 sales growth of 2% to $2.38 billion, surpassing estimates. Adjusted EPS of $0.38 also beat forecasts. Analysts from Morgan Stanley, Piper Sandler, Guggenheim, and Telsey Advisory Group adjusted their ratings and price targets, reflecting concerns over long-term growth, margin pressures, and the delayed achievement of EBIT margin goals. Despite these challenges, FL shares rose by 1.86% to $24.69.
March 07, 2024 | 7:18 pm
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Foot Locker reported higher than expected Q4 FY23 sales and EPS, but faces analyst concerns over long-term growth and profitability. Adjustments in ratings and price targets reflect these challenges.
Despite beating Q4 FY23 estimates, Foot Locker's long-term growth and profitability concerns, as highlighted by analysts, may temper investor enthusiasm. Adjustments in analyst ratings and price targets, along with the company's strategic investments and delayed EBIT margin goals, suggest a cautious outlook. However, the immediate positive stock price reaction indicates mixed short-term sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100