Send me real-time posts from this site at my email
Zacks

Foot Locker (FL) to Report Q2 Earnings: What's in the Offing?

Foot Locker, Inc. FL is expected to register a decline in its top and bottom line from the last fiscal year’s respective quarterly reported figures when it releases second-quarter fiscal 2022 results on Aug 19, before market open. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $2,071 million, indicating a drop of 9% from the prior fiscal year’s quarterly reported figure.

The Zacks Consensus Estimate for quarterly earnings currently stands at 83 cents per share, suggesting a decrease of 62.4% from the earlier fiscal year’s quarterly tally. The consensus mark has dipped a couple of cents over the past seven days.

A glance at this athletic shoes and apparel retailer’s performance over the trailing four quarters shows that it delivered an earnings surprise of 43%, on average.

Key Factors to Note

Foot Locker has been facing supply-chain disruptions for a while now. Higher supply-chain expenses and deleveraged SG&A costs might have weighed on its margins and bottom-line performance in the to-be-reported quarter. On its last earnings call, management had cited that it expects the fiscal second quarter to be its toughest comparison year over year of the current fiscal year. It further added that stimulus headwinds persisted in the fiscal quarter under review.

However, management is consistently trying to improve performance through operational and financial initiatives. FL has been making efforts for a while to boost digital capabilities and strengthen assortments to aid growth. Foot Locker is progressing well with its FLX membership program and its strategic deals, including partnerships and acquisitions. These tailwinds might have contributed to earnings in the fiscal quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Foot Locker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Foot Locker currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -5.65%, leaving surprise prediction inconclusive.

Stocks With Favorable Combination

Here are three companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Ulta Beauty ULTA currently has an Earnings ESP of +2.37% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.86 suggests an improvement of 6.6% from the year-ago fiscal quarter’s reported figure.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Ulta Beauty's top line is expected to rise from the year-ago fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, indicating an improvement of 11.7% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.

Dollar General DG currently has an Earnings ESP of +1.14% and a Zacks Rank of 2. DG is likely to register an increase year over year in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has dipped a penny over the past seven days to $2.91 per share. The consensus mark for DG’s earnings per share suggests 8.2% growth from the year-ago fiscal quarter’s reported number.

Dollar General’s top line is expected to have risen year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.38 billion, which suggests a rise of 8.4% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.

The Children's Place PLCE currently has an Earnings ESP of +1.03% and a Zacks Rank #3. PLCE is likely to register a bottom-line decline year over year when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 97 cents suggests a decline of 43.3% from the year-ago fiscal quarter’s actuals.

The Children's Place's top line is expected to have declined from the year-ago fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $395.6 million, which indicates a decline of 4.4% from the figure reported in the prior-year fiscal quarter. PLCE has a trailing four-quarter earnings surprise of 58%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want to Know the #1 Semiconductor Stock for 2022?

Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.

This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.

Today, it's yours free with no obligation.

>>Give me access to my free special report.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Dollar General Corporation (DG): Free Stock Analysis Report
 
Foot Locker, Inc. (FL): Free Stock Analysis Report
 
Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
 
The Children's Place, Inc. (PLCE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue