GuidanceAnalysts are looking for a profit of 44c on revenue of $1.48B. The consensus range is 33c to 51c for EPS, and revenue of $1.45B to $1.54B, according to First Call. Sales at footwear companies have slowed in recent months as consumers have looked to cut spending. Other issues hampering sales include slower job growth, the credit crunch and a weak housing sector.
Analyst ViewsAdditionally, Goldman Sachs recently warned that a U.S. recession is likely to drag down sales for footwear companies, including Foot Locker, this year. The firm downgraded shares to Sell from Neutral with a $10 target. Goldman also said that footwear companies face the greatest earnings risk during an economic slowdown because of higher fixed costs that will likely bring greater margin decline from pressured sales. Foot Locker reported losses in both Q2 and Q3 and said it planned to close more than 140 underperforming stores during Q4. Foot Locker recently increased its quarterly dividend 20% to 15c per share, payable on May 2.
Source: Earnings Preview: Foot Locker