Foot Locker, Inc. (Foot Locker or 'the company') is a retailer of athletic footwear and apparel. The company operates 3,473 athletic stores under various brand names, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction and SIX:02. Foot Locker has presence in 23 countries. It is headquartered in New York City, New York.
Foot Locker does not have an economic moat. FL's success relies on superior execution. The retail footwear marketplace is highly competitive.
Foot Locker concluded fiscal 2014 in solid fashion. Basketball and running products led the advance. Foot Locker finds itself in a good position to expand over the next few years. Apparel sales are not trending quite as well. The new order planning system, incorporation of its new business intelligence tool, and the ``buy online, ship from store'' (BOSS) initiative all display FL's willingness to invest in the business to improve inventory efficiency measures. Share price appreciation has taken away some of the value as the shares now are priced at fair value.
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Strong athletic footwear and apparel retailer in the US
Expansion into international markets
Strong distribution capabilities
Strong financial performance
Sales are highly correlated to NIKE's performance
Rising labor wages in the US
Rising e-commerce spending
Growing demand for athletic footwear in the US
Increased participation in sporting activity by people in the Generation Z group
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