FL

Foot Locker Inc

Consumer


Presented:11/10/2015
Price:$65.65
Cap:$9.28B
Current Price:$24.60
Cap:$2.33B

Presented

Date11/10/2015
Price$65.65
Market Cap$9.28B
Ent Value$9.13B
P/E Ratio16.58x
Book Value$18.51
Div Yield0%
Shares O/S141.30M
Ave Daily Vol2,055,730
Short Int10.10%

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), Foot Locker Inc (FL), Finish Line Inc (FINL), Nike Inc (NKE), Skechers USA Inc (SKX)

Highlights

The presenter said that what initially got him to look into shorting shares of Foot Locker (FL) at the end of 2014 was the announced departure of highly regarded CEO Ken Hicks. Richard Johnson, who was named COO in 2012 and has been with the company since 1997 took over for Hicks and is trying to replicate his predecessor’s success, but the macro environment has changed and he sees a favorable risk/ reward for bears at ~$65. Hicks closed unprofitable stores and focused on basketball and running shoes as the categories got hot. Today, FL has over 3,400 stores in 23 countries (the US and Canada are its largest markets), Nike is openly going direct to consumer (DTC), and the basketball category is slowing.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.