Foot Locker, Inc. (NYSE:FL) will report its third-quarter results before the market opens on November 29, and analysts at UBS are calling for a letdown relative to expectations.
The shoe retailer is expected to report earnings of $0.23 per share on revenue of $1.97 billion, compared to $1.27 per share on revenue of $2.17 billion.
UBS analysts aren’t as optimistic. The firm has a Sell rating for Foot Locker and a price target of $11, well below its $22.99 trading price as of Tuesday afternoon.
“We expect a 3Q EPS miss and believe FL's 3Q report likely causes sell-side EPS estimates to fall slightly,” the analysts wrote.
Looking ahead, the analysts see uncertainty around the retailer’s fourth quarter sales, making its fourth-quarter guidance a crucial data point to watch for.
“The next nince days, which include Black Friday and Cyber Monday, are very important to FL's 4QTD trend, making it difficult to know what the 4QTD trend will be when FL reports,” analysts wrote.
“We believe FL faces structural challenges. This leads us to believe FL will underperform over the near term and causes us to rate FL Sell,” they added.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on X @andrew_kessel