Shares of Foot Locker (FL, $44.02) plummet after missing Street estimates
Shares of the American sportswear and footwear retailer, Foot Locker, plunged more than 16% on Friday after the shoe retailer reported fiscal first-quarter earnings that missed Wall Street profit and revenue estimates.
Company’s adjusted earnings per share for Q1 stood at $1.53 compared to Wall Street’s estimate of $1.60. While the revenue for the quarter stood at $2.08 billion against the expectation of $2.11 billion, despite the net sales increasing by 2.62% during the quarter.
On an unadjusted basis, Foot Locker reported fiscal first-quarter net income of $172 million, or $1.52 per share, up from $165 million, or $1.38 per share a year earlier.
The main reason for such an unsatisfactory performance of the company is its excessive dependence on major shoe companies like Nike (NKE) who are increasingly bypassing the retailers by directly selling its product to their customers. According to analysts, Foot Locker is excessively dependant on Nike for its sales as the manufacturer accounted for nearly 66% of its sales in fiscal 2018.
The overall situation further worsened as more and more shoppers continued avoiding the retailer, majority of Foot Lockers stores are located in malls, for online shopping.
During the quarter the company also undertook the repurchase of 32,100 shares worth $1.8 million, but which again fell short of the analyst expectations.
With the broader shoe industry facing its own set of challenges, as President Trump has threatened to levy more tariffs on footwear imported from China, the shoe retailers are set for a tough time ahead.
Taking into count the overall situation the company said it now expects its earnings per share to be “up high-single digits” for the year, rather than double-digit growth.
FL's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for FL turned positive on September 24, 2025. Looking at past instances where FL's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 19, 2025. You may want to consider a long position or call options on FL as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Bearish Trend Analysis
The Aroon Indicator for FL entered a downward trend on October 09, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.890) is normal, around the industry mean (6.378). FL's P/E Ratio (125.789) is considerably higher than the industry average of (33.967). FL's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (2.189). Dividend Yield (0.016) settles around the average of (0.030) among similar stocks. P/S Ratio (0.293) is also within normal values, averaging (5.213).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
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General Information
a company which sells athletic footwear and apparels
Industry ApparelFootwearRetail
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