Foot Locker’s Path to Recovery – Analysts Adjust Forecasts Amid Uncertain Road to Long-Term Growth
On Wednesday, Specialty athletic retailer Foot Locker Inc (NYSE:FL) reported fourth-quarter FY23 sales growth of 2% year-on-year to $2.38 billion, beating the analyst consensus estimate of $2.28 billion.
Adjusted EPS of $0.38 beat the analyst consensus of $0.32. Several analysts reacted to the results and updated their opinion.
Morgan Stanley analyst Alex Straton reiterated an Equal-weight rating on the shares and lowered the price target from $28 to $26.
The fourth-quarter results beat a low bar, & brought a challenging year to a close. Revenue outperformance & inventory management stand out, but gross margin disappoints, with EPS upside mostly a function of add-backs, said the analyst.
According to the analyst, elongated timeline to L-T target achievability is also a downside surprise on the print, & likely degrades market confidence in plan execution.
The analyst continues to struggle with a timeline & path to improved fundamentals, especially following ’23 challenges & an uninspiring initial 2024 outlook.
Piper Sandler analyst Abbie Zvejnieks reiterated an Overweight rating on the shares and lowered the price target from $37 to …
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