Foot Locker (FL), like a lot of mall-facing retailers, has had a rough time over the last few years. But it has been making strides on a comeback, especially since it left behind a lot of its connection with shoe giant Nike (NKE). Foot Locker shares were lower by about 3.5% in Monday afternoon trading.
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With Foot Locker about to turn 50 years old, it is currently looking at a bit of an upward trajectory. That is good news, especially given an environment where spending on high-end shoes is likely to suffer going forward. But Foot Locker has been working to plan, cut its costs, and try to spark sales as well.
New store designs are calling attention to individual brands, rather than intermingling them, allowing for customers to express greater brand loyalty. Foot Locker is also looking further into driving “category growth,” as well as making sneakers “more inclusive.” Reports note that the company’s “Lace Up” plan—a master plan for spurring growth—is making headway and delivering results. Foot Locker’s earnings report from last month makes that much quite clear.
Tangible Progress on Product Lines
While Foot Locker will likely suffer somewhat in this economic environment—expensive sneakers will likely prove a discretionary buy, especially when compared to more functional footwear—Foot Locker is still working to insulate itself. One pursuit is with community engagement; Foot Locker recently announced a new round of grants for the Foot Locker Foundation Community Empowerment Program that saw cash handed out to a range of nonprofit organizations.
Further, Foot Locker is also augmenting its stock in trade. A new limited-edition line to celebrate its 50th anniversary is in the works, featuring a range of shoe makers including Nike, Puma, and more. And, a new “omnichannel marketing initiative” was also released back on September 9, which will hopefully drive more interest and people willing to buy upscale shoes instead of settling for basics.
Should You Buy Foot Locker Stock?
Turning to Wall Street, analysts have a Hold consensus rating on FL stock based on two Buys, nine Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 60.14% rally in its share price over the past year, the average FL price target of $28.92 per share implies 5.32% upside potential.
