The brokerage, which reiterated its Buy rating and $79 target price, pointed out that Foot Locker was able to drive the
In the United States, the company managed to dish out mid-single-digit comp increase, while other retailers are struggling to cope with traffic declines.
Bull And Bear Analyses
Following are Canaccord’s bullish and bearish points in Foot Locker’s third quarter print:
- “Strong women's performance (footwear +DD, SIX:02 +DD).”
- “Strength across geographies (FL US +MSD, FL Asia +LSD, FL Canada +DD).”
- “US banners.com +20 percent.”
- “International direct business +50 percent.”
- “Inventory +1.9 percent vs. sales +5.1 percent.”
- “Basketball down.”
- “Headwinds in Europe (FL Europe down LSD, Runners Point and Sidestep down DD).”
- “Eastbay challenged (-HSD).”
- “Accessories soft (-LSD).”
Meanwhile, the company maintained its full-year comp/EPS guidance of +MSD/+DD. In the fourth quarter,
“With multiple growth avenues ahead of it (remodels, women's, e-commerce, international), along with systems/process improvements that will drive more full price selling, we believe FL is well positioned to drive sustained +MSD comp growth and +DD EPS growth in Q4 and, beyond,” analyst Camilo Lyon wrote in a note.
At last check, shares of Foot Locker were up 1 percent at $72.40.
|Nov 2016||Wedbush||Initiates Coverage On||Outperform|
|Sep 2016||Guggenheim||Initiates Coverage on||Neutral|
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