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Foot Locker (FL) Gears Up for Q1 Earnings: Here's What to Expect

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Foot Locker, Inc. (FL - Free Report) is expected to have registered a decline in its top and the bottom line from the last fiscal year’s respective quarterly reported figures when it releases first-quarter fiscal 2023 results on May 19, before the market open. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1,995 million, indicating an 8.3% fall from the prior fiscal year’s quarterly reported figure.

The consensus estimate for quarterly earnings currently stands at 79 cents per share, suggesting a decrease of 50.6% from the earlier year’s quarterly figure of $1.60 per share. The consensus mark has decreased 7.1% over the past 30 days.

We expect revenues to decline 8.8% to $1,983.4 million and adjusted earnings to plunge 47.3% to 84 cents per share for the first quarter. Comparable store sales are likely to drop 9%.

This athletic shoes and apparel retailer delivered an earnings surprise of 39.6%, on average, in the trailing four quarters.

Key Factors to Note

Foot Locker’s quarterly performance is likely to have been hurt by a tough macroeconomic landscape, including inflationary pressures affecting customers’ spending decisions and currency headwinds. Also, increased markdowns on higher promotional activity are weighing on the company’s margins. These factors coupled with any deleverage in SG&A expenses are expected to have hurt FL’s performance in the fiscal first quarter.

However, management has been trying to improve performance through operational and financial initiatives. FL has been making efforts for a while to enhance digital capabilities and strengthen assortments to aid growth. The company is progressing well with its FLX membership program and strategic deals, including partnerships and acquisitions. These tailwinds are likely to have provided some cushion to the quarter under review.

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 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

Foot Locker has an Earnings ESP of -7.64% and a Zacks Rank of 3.

Stocks With a Favorable Combination

Here are a few companies, which according to our model, have the right combination to beat on earnings this reporting cycle:

American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +13.87% and a Zacks Rank of 2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 17 cents suggests an increase of 6.3% from the year-ago quarter.

American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.06 billion, indicating an increase of 0.4% from the figure reported in the year-ago quarter.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.61 suggests a rise of 0.6% from the year-ago quarter.

Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.42 billion, indicating a drop of 1.2% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 9.9%, on average.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.28% and a Zacks Rank of 3. LULU is likely to register top-line improvement when it reports first-quarter fiscal 2023 numbers.

The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of $1.93 suggests a 30.4% increase from the figure reported in the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.

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

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