Needham analyst Tom Nikic has maintained their neutral stance on FL stock, giving a Hold rating on August 12.
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Tom Nikic has given his Hold rating due to a combination of factors impacting Foot Locker’s financial performance. The company’s second-quarter results highlighted challenges in the macroeconomic environment, with a notable decline in comparable sales and an EBIT loss, marking only the second occurrence of such a loss in nearly two decades. International markets, particularly EMEA and Asia, experienced significant sales declines, although domestic sales remained stable with a slight increase.
Despite anticipated improvements from better Nike product allocations, ongoing macroeconomic pressures are expected to hinder Foot Locker’s ability to meet its initial financial targets for the fiscal year 2025. Consequently, the financial projections have been adjusted downwards, with expectations of lower comparable sales and earnings per share than initially guided. However, these adjustments may have limited impact on the stock price due to the impending acquisition by DKS, which is expected to finalize soon.
In another report released on August 12, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.50 price target.