UBS Maintains a 'Neutral' on Foot Locker (FL); Solid Execution vs. Exogenous Risks
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Price: $22.87 +2.83%
Rating Summary:
16 Buy, 21 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
16 Buy, 21 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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UBS maintains a 'Neutral' on Foot Locker (NYSE: FL) price target raised $2 to $24.
UBS analyst says, "F3Q EPS beat was driven by sales upside (SSS +7.4%; UBSe +6%) and strong GM expansion (+215bp vs. UBSe: +70bp). GM was boosted by 130bp from merchandise margin and 90bp of occupancy leverage. SG&A rate de-levered -50bp due to increased ad support and a $7M one-time expense. Key conference call comments: 1) b’ball category sales remain positive despite NBA overhang; 2) Europe SSS trending +lsd; and 3) Lady FL continued to comp negative in F3Q...We are raising our F4Q SSS estimate to +6% from +5%—due largely to comments that Nov SSS are trending at +hsd (Nov is the toughest compare in the quarter)."
"We believe there is additional room for operational improvement, and believe LT financial targets will be revised higher. That said, we remain concerned that lack of NBA games on TV (especially during key periods like All-Star week) could cause decelerating industry trends."
UBS raises FY12 EPS estimate from $1.71 to $1.78 and FY13 from $1.85 to $1.92.
For an analyst ratings summary and ratings history on Foot Locker click here. For more ratings news on Foot Locker click here.
Shares of Foot Locker closed at $22.38 yesterday.
UBS analyst says, "F3Q EPS beat was driven by sales upside (SSS +7.4%; UBSe +6%) and strong GM expansion (+215bp vs. UBSe: +70bp). GM was boosted by 130bp from merchandise margin and 90bp of occupancy leverage. SG&A rate de-levered -50bp due to increased ad support and a $7M one-time expense. Key conference call comments: 1) b’ball category sales remain positive despite NBA overhang; 2) Europe SSS trending +lsd; and 3) Lady FL continued to comp negative in F3Q...We are raising our F4Q SSS estimate to +6% from +5%—due largely to comments that Nov SSS are trending at +hsd (Nov is the toughest compare in the quarter)."
"We believe there is additional room for operational improvement, and believe LT financial targets will be revised higher. That said, we remain concerned that lack of NBA games on TV (especially during key periods like All-Star week) could cause decelerating industry trends."
UBS raises FY12 EPS estimate from $1.71 to $1.78 and FY13 from $1.85 to $1.92.
For an analyst ratings summary and ratings history on Foot Locker click here. For more ratings news on Foot Locker click here.
Shares of Foot Locker closed at $22.38 yesterday.
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