Foot Locker (NYSE:FL) is expected to report Q2 earnings before market open Thursday, Aug. 21, with a conference call scheduled for 9:00 am ET.
Analysts are looking for a profit of 2c on revenue of $1.27B. The consensus range is (8c) to 8c for EPS, and revenue of $1.23B to $1.29B, according to First Call. In May, Foot Locker forecast FY08 EPS 65c to 85c vs. First Call consensus of 72c.
Commenting on the quarter, Citigroup analyst Kate McShane believes the athletic footwear retailer may post better-than-expected results. McShane believes Foot Locker will post Q2 EPS 4c after improving its margins. Additionally, Buckingham's John Zolidis said in an note to clients that he expects Foot Locker will report 8c per share because of improved inventory, the closure of underperforming stores and less discounting. However, Zolidis warned that these factors were already taken into account in Foot Locker's share price, and lowered his rating on the stock to Neutral from Accumulate. Zolidis said that while he is optimistic sales momentum and other factors will contribute to profit recovery,"the environment remains difficult".
Between the faltering economy, soaring food and gas prices, limited credit, slumping home prices and worries about jobs, Foot Locker and other retailers have struggled, particularly with lower traffic and reduced consumer spending.