Foot Locker, Inc. (NYSE:FL) stock will be in focus on Thursday as the company provided outlook for the second quarter that missed the Street analysts’ estimates. This could also percolate to other companies like Finish Line Inc (NASDAQ:FINL) and Shoe Carnival, Inc. (NASDAQ:SCVL) in the same segment.
Foot Locker indicated that it now expects its earnings to be equal to or slight below the previous year’s earnings performance. Alternatively, the company sees its earnings to be $1.36 – $1.39 a share in the first quarter, which is less than the Street analysts’ estimate of $1.47 a share. The company also expects its comparable store sales to grow at a low-single digit percentage.
For the remaining three quarters of the current fiscal year, the company continues to expect that it could deliver double-digit EPS percentage increase and a mid-single digit comparable store sales percentage increase.
However, the weak first quarter earnings and comparable store sales would allow Foot Locker to revise its full year outlook. The company expects a mid single digit percentage increase in comparable store sales and double-digit percentage increase in EPS for the full year.
The company’s EVP and CFO, Lauren Peters, commented, “That guidance included little operating leverage this year for several reasons outlined during our earnings call. With comparable sales that fall short of a mid-single digit percentage increase, we currently expect some operating deleverage in the first quarter.”
The trend could be an eye-opener as to what is to expect from other companies like Finish Line Inc (NASDAQ:FINL) and Shoe Carnival, Inc. (NASDAQ:SCVL).