FL

Foot Locker Inc

Consumer


Presented:10/01/2015
Price:$71.15
Cap:$10.05B
Current Price:$24.60
Cap:$2.33B

Presented

Date10/01/2015
Price$71.15
Market Cap$10.05B
Ent Value$9.13B
P/E Ratio17.97x
Book Value$18.51
Div Yield1.41%
Shares O/S141.30M
Ave Daily Vol1,653,548
Short Int7.84%

Current

Price$24.60
Market Cap$2.33B
Foot Locker, Inc. engages in the global retail of athletically inspired shoes and apparel. The company operates through two segments: Athletic Stores and Direct-to-Customers. The Athletic Stores segment operates athletic footwear and apparel stores under various brands, which includes Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction and CCS. Its product categories include athletic footwear and apparel, and sport-lifestyle inspired accessories. The Direct-to-Customers segment sells athletic footwear, apparel, and equipment, through its affiliates, including Eastbay, Inc., directly to customers through its internet websites, mobile, devices and catalog channels. The company was founded in 1989 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: DSW Inc (DSW), Finish Line Inc (FINL), Foot Locker Inc (FL), Nike Inc (NKE)

Highlights

The presenter is short shares of Foot Locker (FL) and sees a favorable risk/reward for bears. There appears to be limited upside risk, even in a best-case scenario, and the downside for FL is to the low $50s if the consensus comp and margin forecasts prove to be overly optimistic. Generally speaking, FL has been a great stock because the company has been a "huge" beneficiary of the favorable athletic footwear cycle. However, its model is pure distribution (mostly Nike) and there has not been square footage growth in the US, which is its largest market (~70% of sales).

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Idea Discussion

Commentor 1 - 2 weeks ago

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