Sam Poser, an analyst from Williams Trading, maintained the Sell rating on Foot Locker (FL – Research Report). The associated price target is $19.00.
Sam Poser has given his Sell rating due to a combination of factors that suggest a challenging future for Foot Locker. He anticipates that the company’s upcoming earnings report will reveal a significant decline in sales and margins, exacerbated by an estimated $800 million loss in marquee launch products from Nike/Jordan. Poser also foresees a potential cut or delay in Foot Locker’s 2026 financial targets, which were previously stated during an investor day. Additionally, he expresses concern over Foot Locker’s current trading at its highest forward price-to-earnings multiple since May 2009, indicating an overvaluation in the face of dwindling prospects for profitability.
Poser’s analysis suggests that Foot Locker’s operational focus is lacking, which could lead to further market share losses to competitors such as JD/Finish Line, Hibbett, and Dick’s Sporting Goods. He predicts that Foot Locker’s financial performance for the fiscal year will fall significantly short of the initial guidance, with much lower revenue, gross margin, and earnings per share than expected. These projections contribute to the rationale behind his Sell rating, as the company’s targets for revenue and earnings before interest and taxes appear to be overly optimistic and not achievable under current market conditions.
In another report released today, Citi also maintained a Sell rating on the stock with a $22.00 price target.
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Foot Locker (FL) Company Description:
Foot Locker, Inc. engages in the retail of athletic shoes and apparel. It operates through the Athletic Stores and Direct-to-Customers segments. The Athletic Stores segment sells athletic footwear and apparel under the Foot Locker, Lady Foot Locker, SIX:02, Kids Foot Locker, Champs Sports, Footaction, Runners Point, and Sidestep brands. The Direct-to-Customers segment includes Footlocker.com, Inc., Eastbay, Inc., and international electronic commerce businesses. The company was founded on April 7, 1989 and is headquartered in New York, NY.
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