Running a retail business has never been tougher than it is at present. It is the e commerce boom due to which brick and mortar retailers are finding it hard to maintain a decent growth in their top line. In this environment,
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In this article,
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Recent Performance At A GlanceA stronger focus on its distribution network allowed Foot Locker to grow its revenue by 13% in the latest quarter. What was more impressive was that comparable store sales "comp" grew by 7%,
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A higher top line together with inventory markdown and leverage of overheads increased Foot Locker’s gross margin by 80 bps to 32%,
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The company eventually delivered adjusted earnings of 64 cents per share,
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Foot Locker’s Success Is Correlated To Top Foot Footwear BrandsFoot Locker derives its major revenue by selling shoes. The company’s business model incorporates selling of products coming from famous footwear brands such as Nike (NYSE:NKE) and Under Armour (NYSE:UA). Therefore,
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Nike,
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In the latest quarter,
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Similarly,
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Win Win Situation For Foot LockerThe global athletic footwear retail industry is expected to continue its growth momentum,
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This growth will be supported by the fact that before making the purchase,
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Cumulatively,
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ConclusionFoot Locker provides a dividend of 22 cents per share to the investors. The yield currently stands at 1.56%. However,
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Source: Yahoo Finance
The above table summarizes the valuation of Foot Locker’s stock provided by 19 brokers. The mean target price estimate of $60.32 offers an upside potential of 11% at the current market price. The high target presents an upside potential of 22%. I believe that this target is achievable,
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