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Foot Locker Stock Surges in Pre-Market Trade Before Q2 Results

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Foot Locker stock rose 1.9 percent on Aug. 7 and closed at $27.48 with a market capitalization of $2.9 billion. The company's stock price has fallen by 6.5 percent in the trailing five-day period, while it has fallen by 31.9 percent in the trailing 12-month period.

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Foot Locker stock is trading 42.6 percent below its 52-week high of $47.86. The stock was also trading 57.4 percent above its 52-week low of $17.46. On a year-to-date basis, the stock has fallen by 29.5 percent as of Aug. 7.

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Foot Locker stock in pre-market trade

Foot Locker stock rose 11.0 percent in the pre-market trading session today at 9:15 a.m. ET. The stock rose after the company provided a solid business update for the second quarter. Foot Locker said that its comparable store sales grew by 18 percent for the second quarter. Wall Street analysts expected the company's comparable store sales to decline by 23.6 percent.

The athletic shoe and gear retailer expects to post a surprise second-quarter profit due to rising sales.

What does Foot Locker expect in Q2?

Foot Locker will likely release its earnings results for the second quarter of fiscal 2020 (quarter ended Aug. 1) on Aug. 21 before the market opens. The company expects an adjusted EPS of $0.66–$0.70 for the second quarter.

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Wall Street analysts expect Foot Locker to post sales of $1.29 billion in the second quarter—a reduction of 27.1 percent YoY. Also, analysts expect the company to post an adjusted EPS of -$0.60 in the second quarter compared to $0.66 in the second quarter of 2019.

 

In March, Foot Locker withdrew its fiscal 2020 outlook amid uncertainty surrounding the coronavirus pandemic.

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What boosted Foot Locker's performance?

Foot Locker said that its sales jumped in the second quarter as its stores reopened after the lockdown. In a press release, Foot Locker CEO Richard Johnson said, “As we continued to reopen stores throughout the quarter, we saw a strong customer response to our assortments, which we believe was aided by pent-up demand and the effect of fiscal stimulus. This fueled our in-store sales and also drove continued momentum across our digital channels.”

Among the 23 analysts covering Foot Locker stock, nine recommend a buy, 13 recommend a hold, and one recommends a sell. Currently, analysts have a 12-month target price of $29.62 on Foot Locker stock. On Aug. 7, the stock was trading at a discount of 7.8 percent to analysts’ 12-month target price. The consensus target price for the stock has risen from $29.19 in July—a growth of 1.5 percent.

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