Foot Locker, Inc. (FL) Rating Lowered to Strong Sell at Zacks Investment Research
Foot Locker, Inc. (NYSE:FL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday.
According to Zacks, “Foot Locker, which has underperformed the industry in the past one month, has been witnessing a downtrend in estimates. This is due to dismal performance for the second straight quarter in fiscal 2017 and a bleak outlook. The company’s results in the second quarter were impacted by soft performance of “some recent top styles” and lack of innovative fresh products in the market. Challenging retail landscape and changing consumer spending pattern are making operating environment tough. Management now expects comparable sales to decline in the range of 3–4% in remaining part of 2017 with earnings per share projected to decrease in the band of 20–30% during the second half. Margins are also expected to remain pressured going forward. Nevertheless, we believe that building robust capabilities in direct-to-customer unit, rationalizing store fleet and improving supply chain infrastructure may provide cushion to the stock.”
Several other equities research analysts have also issued reports on FL. B. Riley reissued a “buy” rating and issued a $79.00 target price on shares of Foot Locker in a report on Friday, May 12th. Wedbush reissued an “outperform” rating and issued a $83.00 target price on shares of Foot Locker in a report on Wednesday, May 17th. Bank of America Corporation lowered shares of Foot Locker from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $84.00 to $65.00 in a report on Friday, May 19th. Canaccord Genuity set a $75.00 target price on shares of Foot Locker and gave the stock a “buy” rating in a report on Saturday, May 20th. Finally, Jefferies Group LLC set a $80.00 target price on shares of Foot Locker and gave the stock a “buy” rating in a report on Saturday, May 20th. Three equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and twelve have issued a buy rating to the company. Foot Locker presently has an average rating of “Hold” and a consensus target price of $65.81.
Foot Locker (NYSE FL) opened at 35.23 on Wednesday. Foot Locker has a 1-year low of $31.56 and a 1-year high of $79.43. The stock’s 50 day moving average is $44.28 and its 200 day moving average is $61.03. The firm has a market capitalization of $4.65 billion, a price-to-earnings ratio of 8.14 and a beta of 0.68.
Foot Locker (NYSE:FL) last released its quarterly earnings results on Friday, August 18th. The athletic footwear retailer reported $0.62 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.90 by $0.28. The business had revenue of $1.70 billion for the quarter, compared to analysts’ expectations of $1.80 billion. Foot Locker had a net margin of 7.49% and a return on equity of 21.52%. Foot Locker’s revenue for the quarter was down 4.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.94 EPS. Analysts predict that Foot Locker will post $3.96 EPS for the current fiscal year.
A number of hedge funds have recently modified their holdings of FL. Alps Advisors Inc. increased its stake in shares of Foot Locker by 0.3% in the second quarter. Alps Advisors Inc. now owns 6,312 shares of the athletic footwear retailer’s stock worth $311,000 after buying an additional 17 shares in the last quarter. Somerset Trust Co increased its stake in shares of Foot Locker by 0.7% in the second quarter. Somerset Trust Co now owns 6,100 shares of the athletic footwear retailer’s stock worth $300,000 after buying an additional 41 shares in the last quarter. Honkamp Krueger Financial Services Inc. increased its stake in shares of Foot Locker by 0.4% in the second quarter. Honkamp Krueger Financial Services Inc. now owns 14,090 shares of the athletic footwear retailer’s stock worth $694,000 after buying an additional 61 shares in the last quarter. Commerce Bank increased its stake in shares of Foot Locker by 1.3% in the first quarter. Commerce Bank now owns 6,200 shares of the athletic footwear retailer’s stock worth $464,000 after buying an additional 77 shares in the last quarter. Finally, IFP Advisors Inc increased its stake in shares of Foot Locker by 1.9% in the first quarter. IFP Advisors Inc now owns 4,580 shares of the athletic footwear retailer’s stock worth $343,000 after buying an additional 86 shares in the last quarter. Institutional investors own 91.32% of the company’s stock.
Foot Locker Company Profile
Foot Locker, Inc is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02.
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