Foot Locker Inc Stock Forecast:
According to predictions made by 13 analysts, the expected average price for Foot Locker Inc stock over the next 12 months is USD 42.74. The general consensus among these analysts is to Buy. However, Stock Target Advisor’s own analysis of the stock is Slightly Bearish, based on 5 positive signals and 7 negative signals. Currently, the stock’s closing price is USD 39.86, showing a decrease of -0.40% over the past week, -9.80% over the past month, and an increase of +23.25% over the past year.
Analysts Coverage Change:
- Citigroup upgrades Foot Locker Inc. to a “Buy” rating and raises the target price to $50 from $47.
- Barclays maintains their “Equal-Weight” rating ad raises the target price to $43 from $40.
- Evercore ISI upgrades Foot Locker Inc., to an “Outperform” rating with a target price $60.
- Bank of America Merrill Lynch lowers their target price to $45 from $48 and maintains their “Neutral” rating for the stock.
- BTIG maintains their “Buy” rating and lowers the target price to $53 from $55.
Foot Locker Inc. News:
Foot Locker Inc. has announced its projected financial performance for the year, anticipating a decrease in sales by 3.5% to 5.5% and a 30% drop in profit. The decline is attributed to the company’s decision to close stores, exit certain businesses, and increase its investment in areas such as technology and employee compensation. These changes are part of a reset year under new CEO Mary Dillon, with the goal of achieving higher profits and sales starting in 2024.
Despite the lower-than-expected projections, Foot Locker remains optimistic about its future growth, aiming for sales growth of 5% to 6% annually between fiscal years 2024 and 2026. The retailer plans to rebuild its relationship with key partner Nike Inc. and reduce its dependence on the company by diversifying its brand portfolio.
Foot Locker’s fourth-quarter net income fell steeply, with higher markdowns needed to clear inventory contributing to the decline. However, comparable-store sales rose by 4.2%, and the company remains confident in its long-term prospects. Shares in Foot Locker closed down 5.7% at $39.86 on Monday but have increased by 23% over the past 12 months.
Overall, Foot Locker is taking decisive action to position itself for future growth, with a focus on diversification, technology, and employee compensation. While the coming year may see some challenges, the company is confident that its strategic initiatives will yield long-term success.