In a report released today, Sam Poser from Williams Trading maintained a Hold rating on Foot Locker (FL – Research Report), with a price target of $18.00.
Sam Poser has given his Hold rating due to a combination of factors impacting Foot Locker’s performance. Although the company exceeded consensus estimates for fourth-quarter earnings per share and same-store sales, total sales did not meet expectations, and the guidance for fiscal year 2025 was below consensus and back-end weighted. This indicates potential challenges in maintaining consistent sales growth throughout the year.
Furthermore, while there was a positive increase in digital same-store sales, brick-and-mortar locations experienced a slight decline due to poor traffic, despite improved conversion rates and higher average selling prices. The need for promotional activities to drive traffic outside of event periods suggests a cautious consumer environment, particularly noted in February. Additionally, the expectations for the first half of 2025 earnings per share to remain flat year-over-year, with pressure on the first quarter, contribute to the cautious outlook. As a result, estimates have been reduced, and the price target has been lowered from $19 to $18.
In another report released today, Telsey Advisory also maintained a Hold rating on the stock with a $24.00 price target.