Foot Locker downgraded to Market Perform from Outperform at Telsey Advisory

Telsey Advisory downgraded Foot Locker to Market Perform from Outperform with a price target of $28, down from $38. The analyst says higher than expected spending in 2024 is resulting in a more gradual pace of operating margin recovery than the firm anticipated. Foot Locker guided to operating margin expansion of just 10-50 basis points in 2024, despite the comp and gross margin guidance coming in better than expected, the analyst tells investors in a research note. Telsey believes investor skepticism is likely to remain high near-term until there is more evidence that accelerated growth and market share gains are possible at Foot Locker.