Malls all over the world have closed their doors as the COVID-19 pandemic rages. This was terrible news for retailers already under pressure. In many cases, there are going to be entire malls which never reopen. Some retailers will be shuttering their doors as well. One retailers getting stung during the closure is today’s Bear of the Day.
Foot Locker (FL - Free Report) operates as an athletic shoes and apparel retailer. The company operates in two segments, North America and International. The company retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02. It also sells team licensed merchandise for high school and other athletes.
The Retail – Apparel and Shoes industry is in the Bottom 19% of our Zacks Industry Rank. Foot Locker itself is currently a Zacks Rank #5 (Strong Sell). Over the course of the last sixty days, twelve analysts have cut their earnings expectations for the current year while seven have cut next year’s projections. The bearish sentiment has pushed down our Zacks Consensus Estimates for both periods. The current year consensus has dropped precipitously, from $5.28 to $3.08, while next year is down from $5.62 to $4.11.
While Foot Locker is no longer in the good graces of our Zacks Industry Rank, there are a few names in the industry which are. Among those are Zacks Rank #2 (Buy) stocks BOO HOO (BHOOY - Free Report) and Sportsman’s Warehouse (SPWH - Free Report) .
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