Jefferies lowered the firm’s price target on Foot Locker (FL) to $22 from $27 and keeps a Hold rating on the shares after the company’s Q3 results underperformed Street expectations “across the board.” While management discussed strong back-to-school and Holiday seasons, controlled inventories, and encouraging data from FLX Rewards, promotions were more elevated and widespread than anticipated, particularly in Europe and Apparel, leading fiscal year guidance to be lowered, the analyst tells investors. The firm still believes Nike’s (NKE) storytelling and new product innovation cycle “remain a headwind” for Foot Locker, the analyst added.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on FL:
- Salesforce up after Q3, GM outlines $5B in China business charges: Morning Buzz
- Jefferies says Foot Locker read across supports ‘guarded view’ of Nike
- Foot Locker says current marketplace dynamics ‘transitory, not structural’
- Foot Locker sees year-end inventories ‘approximately flat’ vs. 2023
- Foot Locker says private label apparel business a ‘bright spot’