Foot Locker's Non-Nike Sales Hit 40%, Analysts Note Strong Shift

Shares of Foot Locker Inc (NYSE:FL) were heading south in early trading on Thursday, after the company reported downbeat fourth-quarter sales.

The results came in amid an exciting earnings season. Here are some key analyst takeaways.

Telsey Advisory Group On Foot Locker

Analyst Cristina Fernández maintained a Market Perform rating, while reducing the price target from $24 to $20.

While Foot Locker reported healthy fourth-quarter results, its 2025 guidance felt short of expectations "due to lower total sales and operating margin," Fernández said in a note. Over the past couple of years, the company has raised the sales penetration of non-Nike Inc (NYSE:NKE) brands to around 40%, she added.

"Foot Locker plans $300MM in capex in 2025, including higher spending in store remodels, while some technology projects have been delayed," the analyst wrote. While modernizing stores is the right way to go, the company's progress toward the 2028 operating margin target of 8.5%-9.0% "keeps getting pushed out," she further stated.

Check out other analyst stock ratings.

Needham On Foot Locker

Analyst Tom Nikic reaffirmed a Buy rating and price target of $24.

Foot Locker reported fourth-quarter comparable sales growth of 2.6%, in-line with the guidance range, while earnings of 86 cents per share came in above the guidance, Nikic said. "FL saw strength across a wide range of brands in Q4," he added.

Management guided earnings of 1.35-$1.65 per share for fiscal 2025, slightly below the consensus of $1.72 per share, the analyst stated. "Although sales in December/January were strong (both +MSD), management noted that QTD trends have been softer, with increasing macroeconomic uncertainty weighing on consumers’ shopping patterns," he further wrote.

FL Price Action: Shares of Foot Locker were down 3.18% to $17.68 at the time of publication on Thursday.

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