Stocks to Consider and Updates

Foot Locker Tops Expectations as Sales Jump

FL Foot Locker, Inc. (NYSE: FL – $64.35) a retailer of athletic shoes and apparel, reported net income for the third quarter higher than the Street consensus. On an adjusted basis, results for the quarter were $1.00 per share, up 17% from the prior year period and came in higher than the $0.95 per share analysts’ estimates. Sales were $1.79 billion, vs. $1.73 billion reported for the same period last year and above the consensus forecast. Comparable store sales increased 8.7% in the quarter, better than expectations of a 6.2% increase. During the third quarter, the company opened 30 new stores, remodeled or relocated 48 stores and closed 16 stores, operating a total of 3,432 stores in 23 countries. Foot Locker has posted strong results recently amid growth in categories including basketball gear and running styles. And as the U.S. sportswear industry shifts toward more fashion and lifestyle-focused athletic looks and away from more technical sports goods, Foot Locker has been trying to do more with selective and unique apparel offerings compared with department store offerings. The company did not provide guidance for the fourth quarter, but said “we are heading into the holidays with very fresh and distinctive assortments to drive full-price selling”. The shares, off their highs set back in September, have room to run and can continue to be held for long-term price appreciation.

FL

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