UBS Maintains "Buy" Rating on Foot Locker, Inc. (NYSE:FL)

• Foot Locker's first-quarter fiscal 2025 results show a revenue of $1.79 billion, a 4.5% decline from the previous year.
• The company's earnings per share (EPS) of -$0.07 met the Zacks Consensus Estimate, indicating stability in financial performance.
• Foot Locker is executing its Lace Up Plan strategies, focusing on enhancing digital offerings and customer engagement.

On May 29, 2025, UBS reaffirmed its "Buy" rating for Foot Locker, Inc. (NYSE:FL), with the stock priced at $23.93. Foot Locker is a prominent player in the retail industry, specializing in athletic footwear and apparel. The company faces competition from other major retailers like Nike and Adidas, but it continues to focus on strategic initiatives to enhance its market position.

Foot Locker's first-quarter fiscal 2025 results show a revenue of $1.79 billion, a 4.5% decline from the previous year. This drop is attributed to a 2.6% decrease in comparable sales, influenced by softer global traffic trends and store closures. Despite these challenges, the company's earnings per share (EPS) of -$0.07 met the Zacks Consensus Estimate, indicating some stability in its financial performance.

The company's revenue fell short of the Zacks Consensus Estimate of $1.83 billion, resulting in a negative surprise of 1.77%. However, Foot Locker has managed to surpass consensus EPS estimates in two of the last four quarters, demonstrating resilience in its earnings performance. The company is actively executing its Lace Up Plan strategies, focusing on initiatives like the Reimagined and Refresh programs to enhance digital offerings and customer engagement.

Foot Locker's stock, currently priced at $23.93, has seen a slight increase of 0.13% today. The stock has fluctuated between a low of $23.80 and a high of $23.98 during the day's trading. Over the past year, the stock has reached a high of $33.94 and a low of $11, reflecting the volatility in the retail sector. The company's market capitalization stands at approximately $2.29 billion, with a trading volume of 2,797,159 shares.

Despite the revenue challenges, Foot Locker is carefully managing promotions, inventories, expenses, and cash flow amid an uncertain macroeconomic environment. The company is also preparing for the completion of the DICK'S Sporting Goods transaction, which could further impact its financial performance and stock price in the coming quarters.