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Foot Locker (FL) Q3 Earnings Coming Up: What's in the Offing?
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Foot Locker, Inc. (FL - Free Report) is expected to have registered a year-over-year decline in its top and bottom lines in the third quarter of fiscal 2023. The company is scheduled to report its third-quarter fiscal 2023 results on Nov 29, before market open. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1,966 million, indicating a 9.5% fall from the prior fiscal year’s quarterly reported figure.
The consensus estimate for quarterly earnings is currently 23 cents per share, suggesting a significant decrease from earnings of $1.27 per share reported in the year-earlier quarter. The consensus mark has been stable over the past 30 days.
This athletic shoes and apparel retailer delivered an earnings surprise of 18.2%, 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. In fact, a slowdown in consumer spending has been hurting the company’s performance.
In addition, increased markdowns on higher promotional activity and occupancy deleverage have been weighing on the company’s margins. These factors, coupled with any deleverage in selling, general & administrative expenses, are expected to have hurt FL’s performance in the quarter under discussion. We expect comparable sales to decrease 9.1% in the quarter to be reported. We anticipate the gross margin to contract 430 basis points and the adjusted operating margin to decline 600 basis points during the third quarter.
On a positive note, 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 has been 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.
The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the year-ago quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +3.68% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $726 million, calling for growth of 12.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 23 cents suggests a 20.7% decrease from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 29.2%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +3.00% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.43 suggests an increase of 10.7% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
Image: Bigstock
Foot Locker (FL) Q3 Earnings Coming Up: What's in the Offing?
Foot Locker, Inc. (FL - Free Report) is expected to have registered a year-over-year decline in its top and bottom lines in the third quarter of fiscal 2023. The company is scheduled to report its third-quarter fiscal 2023 results on Nov 29, before market open. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1,966 million, indicating a 9.5% fall from the prior fiscal year’s quarterly reported figure.
The consensus estimate for quarterly earnings is currently 23 cents per share, suggesting a significant decrease from earnings of $1.27 per share reported in the year-earlier quarter. The consensus mark has been stable over the past 30 days.
This athletic shoes and apparel retailer delivered an earnings surprise of 18.2%, 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. In fact, a slowdown in consumer spending has been hurting the company’s performance.
In addition, increased markdowns on higher promotional activity and occupancy deleverage have been weighing on the company’s margins. These factors, coupled with any deleverage in selling, general & administrative expenses, are expected to have hurt FL’s performance in the quarter under discussion. We expect comparable sales to decrease 9.1% in the quarter to be reported. We anticipate the gross margin to contract 430 basis points and the adjusted operating margin to decline 600 basis points during the third quarter.
On a positive note, 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 has been 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-eps-surprise | Foot Locker, Inc. Quote
Foot Locker has an Earnings ESP of -17.37% and a Zacks Rank #5 (Strong Sell), thus making surprise prediction difficult.
Stocks With the Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Build-A-Bear Workshop (BBW - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the year-ago quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +3.68% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $726 million, calling for growth of 12.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 23 cents suggests a 20.7% decrease from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 29.2%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +3.00% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.43 suggests an increase of 10.7% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.