Foot Locker Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

Foot Locker is expected to release Q1 earnings on Thursday, with analysts anticipating EPS of $0.11 versus a loss of $0.05 year-over-year and revenue of $1.88 billion, slightly down from $1.9 billion the prior year. The report follows the May 15 announcement of Dick's Sporting Goods' $2.4 billion acquisition of Foot Locker. Several analysts have adjusted their ratings and price targets on Foot Locker following the acquisition news, with most moving to a neutral stance and a consensus price target of $24.

Analysis

Foot Locker (FL) is scheduled to report first-quarter earnings before the market opens on Thursday, May 29, with analysts forecasting earnings of $0.11 per share, a significant turnaround from a $0.05 loss per share in the prior-year period. Concurrently, quarterly revenue is projected at $1.88 billion, representing a slight decrease from $1.9 billion reported a year earlier. This financial disclosure follows the May 15 announcement of a definitive agreement for Foot Locker to be acquired by Dick's Sporting Goods (DKS), in a transaction valuing Foot Locker's equity at approximately $2.4 billion and its enterprise value at about $2.5 billion. Subsequent to the acquisition news, several analysts updated their ratings and price targets: Citigroup (Paul Lejuez) maintained a Neutral rating and raised its price target to $24 on May 16, 2025; Baird (Jonathan Komp) also maintained Neutral, increasing its target to $24 on May 16, 2025; Barclays (Adrienne Yih) downgraded the stock from Overweight to Equal-Weight, raising its target to $24 on May 16, 2025; Needham (Tom Nikic) downgraded from Buy to Hold with a $24 target on May 15, 2025; and JP Morgan (Matthew Boss) upgraded from Underweight to Neutral, with an increased target of $24 on May 15, 2025. Foot Locker's shares closed at $23.90 on Wednesday, indicating the market has largely priced in the acquisition, with the consensus $24 price target from these analysts underscoring the deal's implied valuation.

Key Decisions for Investors

• Given Foot Locker's stock price of $23.90 and the consistent analyst price target of $24, which aligns with the implied valuation from the Dick's Sporting Goods acquisition, the potential near-term upside for FL shares appears constrained to the acquisition price.
• Investors should recognize that the primary determinant for Foot Locker's stock performance is now the successful completion and timing of the acquisition by Dick's Sporting Goods, rather than the typical impact of its upcoming Q1 earnings, despite expectations of a return to profitability.
• Shareholders should closely monitor all developments related to the acquisition's progress, including regulatory reviews and shareholder approvals, as the investment thesis for Foot Locker has shifted to an M&A arbitrage scenario where returns are linked to deal consummation at or near the implied $24 per share level.