Foot Locker, Inc. (NYSE:FL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday.

According to Zacks, “Foot Locker, which has underperformed the industry in the past one month, has been witnessing a downtrend in estimates. This is due to dismal performance for the second straight quarter in fiscal 2017 and a bleak outlook. The company’s results in the second quarter were impacted by soft performance of “some recent top styles” and lack of innovative fresh products in the market. Challenging retail landscape and changing consumer spending pattern are making operating environment tough. Management now expects comparable sales to decline in the range of 3–4% in remaining part of 2017 with earnings per share projected to decrease in the band of 20–30% during the second half. Margins are also expected to remain pressured going forward. Nevertheless, we believe that building robust capabilities in direct-to-customer unit, rationalizing store fleet and improving supply chain infrastructure may provide cushion to the stock.”

A number of other equities analysts have also weighed in on the stock. B. Riley reiterated a “buy” rating and issued a $79.00 price objective on shares of Foot Locker in a research report on Wednesday, May 17th. Piper Jaffray Companies reiterated a “neutral” rating on shares of Foot Locker in a research report on Monday, August 21st. Jefferies Group LLC set a $80.00 price objective on shares of Foot Locker and gave the company a “buy” rating in a research report on Saturday, May 20th. Robert W. Baird lowered shares of Foot Locker from an “outperform” rating to a “neutral” rating in a research report on Monday, August 21st. Finally, Buckingham Research restated a “buy” rating and set a $47.00 target price (down from $61.00) on shares of Foot Locker in a research report on Tuesday, August 22nd. Three equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and twelve have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $65.81.

Shares of Foot Locker (NYSE FL) opened at 35.16 on Wednesday. The stock has a market cap of $4.64 billion, a PE ratio of 8.13 and a beta of 0.68. The stock’s 50 day moving average is $45.77 and its 200-day moving average is $62.02. Foot Locker has a 12-month low of $31.56 and a 12-month high of $79.43.

Foot Locker (NYSE:FL) last announced its earnings results on Friday, August 18th. The athletic footwear retailer reported $0.62 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by $0.28. The business had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.80 billion. Foot Locker had a net margin of 7.49% and a return on equity of 21.52%. The business’s revenue was down 4.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.94 earnings per share. Equities analysts expect that Foot Locker will post $3.96 EPS for the current year.

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Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. raised its stake in shares of Foot Locker by 2,189.3% in the first quarter. BlackRock Inc. now owns 9,163,944 shares of the athletic footwear retailer’s stock valued at $685,553,000 after buying an additional 8,763,641 shares in the last quarter. Renaissance Technologies LLC raised its stake in shares of Foot Locker by 1,744.5% in the second quarter. Renaissance Technologies LLC now owns 1,372,300 shares of the athletic footwear retailer’s stock valued at $67,627,000 after buying an additional 1,297,900 shares in the last quarter. Morgan Stanley raised its stake in shares of Foot Locker by 151.3% in the first quarter. Morgan Stanley now owns 1,439,075 shares of the athletic footwear retailer’s stock valued at $107,656,000 after buying an additional 866,525 shares in the last quarter. Wedge Capital Management L L P NC raised its stake in shares of Foot Locker by 7,355.2% in the first quarter. Wedge Capital Management L L P NC now owns 765,421 shares of the athletic footwear retailer’s stock valued at $57,261,000 after buying an additional 755,154 shares in the last quarter. Finally, Koch Industries Inc. bought a new stake in shares of Foot Locker during the second quarter valued at approximately $720,000. 91.32% of the stock is currently owned by institutional investors.

About Foot Locker

Foot Locker, Inc is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02.

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