Add a New Bulls Reason

Company: Foot Locker (FL)
Current price:
Headline: (100 character max)
Analysis:
Cancel
100%
agree
4 votes

  Closing Stores Improves Future Performance

After Foot Locker's company-wide operating margin fell to 6.6% in 2006 (from 7.2% in 2005), the company began an initiative to improve efficiency and profitability by changing their store base. This strategy comprised opening new stores, relocating existing stores to optimal locations and closing down unproductive stores. During 2007, Foot Locker closed 157 stores on net (opening 117 new stores while shutting down 274 underperforming locations). The store closings have continued in 2008 as in the first quarter of FY08, Foot Locker closed 60 more stores, while simultaneously opening 33 new locations for a net decrease of 27 stores. The initiative is still incomplete, as management plans on closing about 140 stores during 2008, while opening about 60 stores and remodeling/re-locating around 200 stores. Although this initiative is very costly, once completed, FL's stores will be much more efficient and profitable in the future.

(100 character max) Cancel
100%
agree
2 votes

  Foot Locker's Increased Emphasis on Running Leaves Room for Growth

An analyst at Barclays has pinpointed Foot Locker as a company to watch in the near future, due to its identification of many ways to improve its business. Chief among these methods is a decision to focus on running products and apparel, particularly through a running-focused prototype store called Run by Foot Locker in New York. With an increased emphasis on running, the analyst believes Foot Locker can easily meet its plan to reach annual sales of $6 billion and net income margin of 5 percent over the next five years.

(100 character max) Cancel
0%
agree
0 votes

  Movement into Low-Performance Footwear Protects Sales

In November 2008, Foot Locker acquired Delia's CCS business for $103.2 million. CCS is a direct-to-consumer (internet and catalog) retailer of skateboarding apparel, footwear and accessories, mailing approximately 18 million catalogs annually. The move represents an attempt on Foot Locker's part to appeal to a younger target market, particularly in the rapidly growing action and extreme sports categories as FL's staple high-performance footwear segment declines because of a weakening economy and spending environment.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki