Foot Locker (FL) is expected to report Q4 earnings after the market close on Wednesday, March 4 with a conference call scheduled for Thursday, March 5 at 9:00 am ET.
Analysts are looking for a profit of 16c on revenue of $1.37B. The consensus range is 12c-31c for EPS, and revenue of $1.32B-$1.42B, according to First Call. In November, the company lowered its FY08 EPS view to 50c-63c from 70c-85c vs. First Call consensus of 59c.
Despite macro pressures weighing on the business, Smith Barney says there could be an upside to the stock due to better-than-expected comps and margins. The firm says most of the downside is already priced into the stock and that if the company beats expectations, or introduces better-than-expected guidance, the stock could increase 5%-10%. If it misses expectations the stock could fall another 3%-5%. The analyst believes EPS will come in at 13c and expects flat comp store sales to decline 7% over a -7.8% comp in Q408, which would bring the FY09 comp in-line with management's guidance of down in the low-to-mid-single digits. Additionally, higher average selling prices for footwear could help mitigate weaker mall traffic trends and broader macro pressures.