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Today we are watching…
1.ย Foot Locker (#footlocker)
We made it! We’ve officially come out the other side of yet another earnings season. Closing the show today is Foot Locker, a sneaker retailer. Investors are none the wiser as to whether closing Foot Locker stores will result in a boost to profit this quarter, but it’s possible! The majority of brick and mortar stores struggle to keep up with their leases, but boarding up the windows could easily put the sneaker brand in a catch-22. When customers see stores closing, they often assume the worst. If they feel the brand is disappearing, it’ll surely lose its shine, and customers will be more reluctant to shop there. Analysts’ glasses are half-full, however, tipping the firm to beat profit per share estimates of $0.66 on $1.8 billion in revenue.
2. Hibbett Sports (#hibb)
Another retailer up against the wall, Hibbett is desperately trying to transition itself from offline decay to online success. Retail has been under threat for years, and the slow adaptation of firms like Hibbett make these latest efforts a matter of life and death. Despite insiders selling with quarter after quarter of losses stacking up, some investors see the light at the end of the tunnel with a share repurchase program. So, tough times ahead, but pleasant short-term earnings surprises are extra potent for struggling firms. Analysts estimate a $0.10 loss of profit per share on $270 million in revenue.