Yahoo Finance Foot Locker (FL) Gears Up For Q4 Earnings: What to Expect
Foot Locker, Inc. FL is expected to register a decline in its top and the bottom line from the last fiscal year’s respective quarterly reported figures when it releases fourth-quarter fiscal 2022 results on Mar 20, before the market open. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $2,152 million, indicating an 8.3% fall from the prior fiscal year’s quarterly reported figure.
The Zacks Consensus Estimate for quarterly earnings currently stands at 52 cents per share, suggesting a decrease of about 69% from the earlier fiscal year’s quarterly figure of $1.93. The consensus mark has increased a penny over the past seven days.
We expect revenues to decline 8.6% to $2,139 million and adjusted earnings to plunge 72% to 47 cents per share for the fourth quarter. Comparable store sales (comps) are likely to drop 7.8%.
This athletic shoes and apparel retailer delivered an earnings surprise of 22.2%, on average, in the trailing four quarters.
Key Factors to Note
Foot Locker’s quarterly performance might have been hurt by a tough macroeconomic landscape including inflationary pressures affecting customers’ spending decisions and currency headwinds. Also, increased markdowns on higher promotional activity and supply-chain cost pressures are weighing on the company’s margins. These factors coupled with any deleverage in SG&A expenses might have hurt FL’s performance in the fourth quarter.
On its last earnings call, management had projected a total sales decline of 8-10%, with comps falling 6-8% for the fourth quarter of fiscal 2022. It had anticipated a gross margin of 29-29.3% and the SG&A rate to deleverage 90-100 basis points to 23.3-23.4%. Foot Locker had envisioned adjusted earnings of 45-53 cents a share for the fourth quarter.
However, management has been trying to improve performance through operational and financial initiatives. FL has been making efforts for a while to enhance digital capabilities and strengthen assortments to aid growth. Foot Locker is progressing well with its FLX membership program and strategic deals, including partnerships and acquisitions. These tailwinds might have provided some cushion to the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Foot Locker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Foot Locker, Inc. Price and EPS Surprise
Foot Locker, Inc. price-eps-surprise | Foot Locker, Inc. Quote
Foot Locker currently has an Earnings ESP of +1.92% and a Zacks Rank of 3.
Other Stocks With Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to beat on earnings:
Ollie's Bargain Outlet OLLI currently has an Earnings ESP of +4.12% and a Zacks Rank of 2. OLLI is likely to register an increase in the bottom line from the year-ago quarter’s reported figure when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at 80 cents per share over the past 30 days, suggesting a 15.9% rise from the year-ago quarter’s reported number.
Ollie's Bargain Outlet’s top line is expected to grow from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $543 million, suggesting an 8.3% increase from the figure reported in the prior-year quarter. OLLI delivered a negative earnings surprise of 18.7%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp PVH currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is likely to register a decrease in the bottom line from the year-ago quarter’s reported figure when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.64 per share over the past 30 days, suggesting a 42.3% decline from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to fall from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, suggesting a 3.8% decline from the figure reported in the prior-year quarter. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Skechers SKX currently has an Earnings ESP of +9.74% and a Zacks Rank of 3. The company is likely to register a bottom-line decline when it reports first-quarter 2023 numbers. The Zacks Consensus Estimate of 60 cents earnings per share suggests a decline of 22.1% from the year-ago quarter.
Skechers’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.84 billion, which indicates a rise of 1% from the figure reported in the prior-year quarter. SKX has a trailing four-quarter earnings surprise of 3.8%, on average.
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Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report
Foot Locker, Inc. (FL) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
