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Here's How Foot Locker (FL) is Poised Ahead of Q3 Earnings

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We expect Foot Locker, Inc. (FL - Free Report) to register growth in both its top and the bottom line from the respective year-ago reported figures when it releases third-quarter fiscal 2021 results on Nov 19, before market open.

The Zacks Consensus Estimate for quarterly earnings currently stands at $1.32, suggesting an improvement of about 9% from the year-ago quarter’s tally. The consensus mark has increased a penny over the past seven days.

The consensus estimate for quarterly revenues is currently pegged at $2,121 million, which indicates a marginal rise of 0.8% from the year-ago quarter’s reported figure.

A glance at this athletic shoes and apparel retailer’s performance over the trailing four quarters shows that it witnessed an earnings surprise of 73.1%, on average.

Key Factors to Note

Foot Locker’s third-quarter fiscal 2021 performance is likely to have benefited from the improved demand trends as outdoor activities are picking up the pace. Solid performance across FL’s women's and kids' footwear businesses as well as an impressive performance of its apparel and accessories categories might further aid quarterly results. Foot Locker has been trying to improve its performance through its operational and financial initiatives for a while.

Management is consistently bolstering FL’s omni-channel experience via adding functionalities and activating a Shop My Store feature on its website. Foot Locker’s direct-to-consumer channels have been exhibiting immense strength for a while. It is constantly making solid efforts to boost its digital capabilities and strengthen its product assortments with growth in the basketball category.

FL is progressing well with its FLX membership program too. All the aforesaid factors coupled with gains from its strategic deals including partnerships and acquisitions are expected to bolster the company’s results in the to-be-reported quarter.

On the flip side, Foot Locker continues to witness pressure due to the COVID-related challenges including store closures in some markets. Management is cautious about supply-chain disruptions, higher freight costs and incremental expenses associated with the pandemic.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Foot Locker this reporting cycle. 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, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Foot Locker Price and EPS Surprise

Foot Locker Price and EPS Surprise

Foot Locker price-eps-surprise | Foot Locker Quote

Foot Locker currently has a Zacks Rank #3 and an Earnings ESP of +11.56%.

More Stocks With a Favorable Combination

Here are a few other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this season:

Macy's (M - Free Report) currently has an Earnings ESP of +9.77% and a Zacks Rank of 1. It is likely to register top and bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has moved 19.2% north in the past seven days to 31 cents per share. M reported a loss of 19 cents a share for the year-ago quarter.

The Zacks Consensus Estimate for Macy's quarterly revenues is pegged at $5.3 billion, which suggests growth of 32.6% from the figure reported in the prior-year quarter. M delivered an earnings beat of 269.8%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lowe's Companies (LOW - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank #2. It is likely to register a bottom-line increase when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has moved 2.2% up in the past seven days to $2.32 per share, suggesting 17.2% growth from the year-ago quarter's reported number.

The Zacks Consensus Estimate for Lowe's quarterly revenues is pegged at $21.8 billion, suggesting a decline of 2.1% from the figure reported in the prior-year quarter. LOW delivered an earnings beat of 10.1%, on average, in the trailing four quarters.

Home Depot (HD - Free Report) currently has an Earnings ESP of +1.42% and a Zacks Rank of 2. HD is expected to register the top- and bottom-line increase when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has been revised 2.1% upward in the past seven days to $3.40 per share, suggesting 6.9% growth from the year-ago quarter's reported number.

The Zacks Consensus Estimate for Home Depot's quarterly revenues is pegged at $34.8 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. HD delivered an earnings beat of 9.2%, on average, in the trailing four quarters.


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Macy's, Inc. (M) - free report >>

Lowe's Companies, Inc. (LOW) - free report >>

The Home Depot, Inc. (HD) - free report >>

Foot Locker, Inc. (FL) - free report >>