Like Nike Rebounds, Foot Locker too

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<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With the fourth quarter almost in the books, Jefferies sees several encouraging signs of Foot Locker, Inc. (NASDAQ: FL). "data-reactid =" 18 "> As the fourth quarter is almost over, Jefferies sees several encouraging signs. Foot Locker, Inc. (NASDAQ: FL).

L & # 39; analyst

Janine Stichter, an analyst at Jefferies, maintains a purchase price and raises her price target from $ 62 to $ 67.

The thesis

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Foot Locker's activities continue to grow because of a Nike Inc (NYSE: NKE) & nbsp; resurgence in North America, a healthy innovation pipeline, a return to & nbsp; basketball shoes and controlled promotions, said Stichter in a note released Friday. a Nike Inc (NYSE: NKE) in North America, a pipeline of healthy innovations, a strong comeback of basketball shoes and controlled promotions, said Stichter in a note released Friday.

Nike's Air Max and Air Force have seen significant growth in searches on the 12-month Foot Locker website, the analyst said.

The research on Air Max accounted for 1.5% of traffic on the shoe retailer 's website, an increase of 125 basis points from one year to the next, according to Jefferies.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Small brands are also starting to make a significant contribution – & nbsp; Fila with his Disruptor 2Stichter said: "An essential style for women." & nbsp; "Data-reactid =" 25 "> Small brands are also starting to make a significant contribution – notably Fila with her Disruptor 2, an essential feminine style, said Stichter.

"We appreciate the steps taken by FL to diversify its product range, expanding its range of small brands such as Fila, Vans, UGG, K-Swiss and Champion, by responding to customer demand for these labels."

Foot Locker shares have performed well in recent times, but there is still an opportunity, with historically low valuations and relative to peers, said Stichter.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Basketball shoes have been in difficulty for several yearsin particular jordanThe analyst said the data indicated an improvement in the category. "data-reactid =" 28 "> The basketball shoes have been struggling for several years, especially in Jordan, which has experienced difficulties According to the analyst, Foot Locker is a wind of major force, but the data suggest an improvement in the category.

The number of searches related to basketball is increasing year by year and the massive release of Jordan 11 Retro Concord continues to sell at a higher price in the resale market, said the analyst.

"We believe that basketball should continue to move towards positive results in the fourth quarter, especially as the changes in distribution in Jordan are obsolete."

Price action

Foot Locker shares were up 0.29% to $ 56.78 at the time of publication Friday.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Photo of Dwight Burdette / Wikimedia. & Nbsp;"data-reactid =" 36 ">Photo of Dwight Burdette / Wikimedia.

Latest reviews for FL

Date Action closes at From January 2019 Jefferies repeats purchase Purchase in January 2019 Upgrade of Baird Neutral Outperform November 2018 Citigroup maintains purchase

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