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Foot Locker (FL) to Post Q1 Earnings: Key Things to Note

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Foot Locker, Inc. (FL - Free Report) is expected to register growth in its top line from the last fiscal year’s quarterly reported figure when it releases first-quarter fiscal 2022 results on May 20, before market open. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $2,203 million, indicating a rise of 2% from the prior fiscal year’s quarterly reported figure.

However, the bottom line is likely to decline from the prior fiscal year’s quarterly reported number. The Zacks Consensus Estimate for quarterly earnings currently stands at $1.38, suggesting a decrease of 30% from the earlier fiscal year’s quarterly tally. The consensus mark has dipped 5.5% over the past 30 days.

A glance at this athletic shoes and apparel retailer’s performance over the trailing four quarters shows that it delivered an earnings surprise of 58.8%, on average.

Key Factors to Note

Foot Locker’s sales for the fiscal first quarter are likely to have benefited from robust consumer demand and product categories like apparel and accessories. FL’s efforts to boost digital capabilities and strengthen assortments are likely to keep yielding favorably. Management has been trying to improve performance through operational and financial initiatives for a while now.

FL is steadily enhancing its omni-channel experience by adding functionalities and activating a Shop My Store feature on its website. Its direct-to-consumer channels have been exhibiting immense strength for a while. Foot Locker 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 have bolstered FL’s revenues in the to-be-reported quarter.

However, the industry-wide supply-chain disruptions remain headwinds. This includes port congestions and factory shutdowns, which might have dampened the performance for the fiscal first quarter. These limitations coupled with higher freight and supply-chain expenses as well as deleveraged occupancy costs might have weighed on the bottom-line performance in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Foot Locker this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Foot Locker, Inc. Price and EPS Surprise

Foot Locker, Inc. Price and EPS Surprise

Foot Locker, Inc. price-eps-surprise | Foot Locker, Inc. Quote

Although Foot Locker currently has an Earnings ESP of +0.54%, its Zacks Rank #4 (Sell) in the combination leaves surprise prediction inconclusive.

Stocks With a Favorable Combination

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

Costco (COST - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #2, currently. COST is likely to register an increase in the bottom line from the last fiscal year’s quarterly reading when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a couple of cents to $3.04 per share in the past 30 days, indicating an improvement of 10.6% from the prior fiscal year’s quarterly tally. You can see the complete list of today’s Zacks #1 Rank stocks here

Costco’s top line is expected to rise from the last fiscal year’s quarterly reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.8 billion, which suggests an increase of 14.3% from the figure reported in the prior fiscal year’s comparable period. COST delivered an earnings beat of 13.3%, on average, in the trailing four quarters.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +3.73% and a Zacks Rank #3. CASY is anticipated to register a top-line increase from the last fiscal year’s quarterly reading when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for CASY’s revenues is pegged at $3,341 million, indicating a rise of 40.4% from the figure reported in the prior fiscal year’s quarter.

The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.48 per share, suggesting an improvement of 32.1% from the last fiscal year’s quarterly reported number. CASY delivered an earnings beat of 21.6%, on average, in the trailing four quarters.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.28% and a Zacks Rank of 3. LULU is likely to register an increase from the last fiscal year’s quarterly reading in the bottom line when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has moved 8.5% north to $1.40 per share, suggesting 20.7% growth from the earlier fiscal year’s quarterly reported number.

lululemon athletica’s top line is expected to rise from the prior fiscal year’s quarterly reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.54 billion, which suggests a rise of 25.7% from the figure reported in the prior fiscal year’s quarter. LULU delivered an earnings beat of 20.9%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.