Executive Summary

• Foot Locker reported 4Q15 revenue of $2.0 billion, up 5.0% year over year, in line with the consensus estimate.
• The company reported adjusted EPS of $1.16 for the quarter, up 16.0% year over year and beating the consensus estimate of $1.12. The upside was driven by sales in the basketball and running footwear segments. Comparable-store sales increased by 7.9%, beating the consensus of 5.9% and in line with guidance for a mid-single-digit increase.
• For 2016, Foot Locker expects a mid-single-digit comp increase, in line with the consensus estimate of 4.7%. EPS is projected to grow in the double digits versus analysts’ expectations of a 10.8% increase, to $4.75.