FL

Foot Locker Inc.

Consumer


Presented:09/10/2014
Price:$56.79
Cap:$8.16B
Current Price:$24.60
Cap:$2.33B

Presented

Date09/10/2014
Price$56.79
Market Cap$8.16B
Ent Value$7.34B
P/E Ratio35.88x
Book Value$30.04
Div YieldN/A
Shares O/S143.71M
Ave Daily Vol1,560,000
Short Int2.55%

Current

Price$24.60
Market Cap$2.33B
Foot Locker, Inc., together with its subsidiaries, operates as a retailer of athletic footwear and apparel. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, and SIX:02, as well as Runners Point, Sidestep, and Run2. As of February 1, 2014, it operated 3,473 primarily mall-based stores in the United States, Canada, Europe, Australia, and New Zealand. The Direct-to-Customers segment sell athletic footwear, apparel, equipment, team licensed products, private-label merchandise, and accessories through Internet Websites, catalogs, and mobile devices. The company also provides franchise licenses to open and operate its Foot Locker stores in the Republic of Korea and the Middle East; and Runners Point and Stepside stores in Germany and Switzerland. It operated 73 franchised stores. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York.

Please note, this is an update to Short - J. C. Penney Company, Inc. (JCP), which was originally presented on 3/3/14.
Publicly traded companies mentioned herein: Foot Locker, Inc. (FL), Nike Inc. (NKE), Finish Line (FINL)

Highlights

Foot Locker is the dominant player in mall-based athletic footwear retail, operating under a variety of banners, including Champ’s and Footaction. The stock has been a strong performer over the past few years on the strength of a series of solid product cycles, but the presenter sees little upside from here. Currently trading at about 15 times next year, the market is assuming that the company will continue to comp in the mid single digits, with continued margin expansion and stock buybacks. The Street seems to love the name, with an overwhelming number of analysts posting buy recommendations.

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Idea Discussion

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