Foot Locker (FL) Beats Q4 Earnings Estimates

Core Viewpoint - Foot Locker reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and showing significant growth from $0.38 per share a year ago, indicating a strong earnings surprise of 17.81% [1][2] Financial Performance - The company posted revenues of $2.25 billion for the quarter ended January 2025, which was 3.42% below the Zacks Consensus Estimate and a decline from $2.38 billion in the same quarter last year [2] - Over the last four quarters, Foot Locker has surpassed consensus EPS estimates three times but has only topped revenue estimates once [2] Stock Performance - Foot Locker shares have declined approximately 20.2% since the beginning of the year, contrasting with the S&P 500's decline of 1.8% [3] - The current Zacks Rank for Foot Locker is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $1.91 billion, while the estimate for the current fiscal year is $1.71 on revenues of $8.22 billion [7] - The trend of estimate revisions for Foot Locker has been unfavorable leading up to the earnings release [6] Industry Context - The Retail - Apparel and Shoes industry, to which Foot Locker belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Foot Locker's stock performance [5]