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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.



  • 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 


  • Intense competition
    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 

The above report is for information purposes only, and is not a solicitation or offer to buy or sell any securities. Past performance is no guarantee of future performance. Neither diversification nor asset allocation ensures a profit or guarantees against loss. Before investing, investors should consider their risk tolerance, investment objectives, time horizon, available capital, and charges and expenses.  


The information presented in this report has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guranteed. All material is subject to change without notice. The views and opinions expressed are those of Focused Stock Research and/or WALT ST Investment Management, Ltd. and in no way reflect the views and opinions of Investment Consultants nor their Broker Dealers.


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