FBR Affirms Foot Locker (FL) at 'Market Perform'; Q1 Comps Miss, but Profit at Record Levels

FBR affirms Foot Locker (NYSE: FL) at Market Perform with a price target of $71 following Q1 results release earlier Friday.

Analyst Susan Anderson commented today, FL reported adjusted 1Q EPS of $1.39, versus FBR/consensus of $1.41/$1.39. Management noted in the press release that 1Q16 was the most profitable quarter in company history. Comps were +2.9%, versus FBR/consensus of +5.0%/+4.5% and +7.8% LY.

Recall that when FL reported 4Q earnings on Feb 26, comps were running +LSD [low single-digits]. Management noted that in Feb FL cycled the strong sales associated with LY's NBA All-Star game in New York, and expectations were for comps to be +MSD for the remainder of the quarter. It appears that a slowing basketball market could be starting to weigh on FL's top line given that it has the most exposure to basketball. We would note though that FL has done a good job of moving into other popular categories, such as casual running, which could help to offset basketball weakness.

For an analyst ratings summary and ratings history on Foot Locker click here. For more ratings news on Foot Locker click here.

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