Foot Locker Plunges

A few times I’ve come close to adding Foot Locker (FL) to our Buy List. Each time, I held off. Now I’m glad I did. The shares crashed 28% on Friday, and they’re down again today.

Foot Locker had an absolutely terrible earnings report. The company made 62 cents per share instead of the 90 cents Wall Street had been expecting. The Street had been expecting a 1% increase in same-store sales. Instead, they fell by 6%.

Not only that, but the stock had been plunging going into earnings season as well. The company said it will close 130 stores this year. If that weren’t enough, earlier this year, Nike said they plan to sell through Amazon.

This is more evidence that the retail landscape is changing. Amazon is eating up most everything, and the big box stores are taking the rest.

Posted by on August 21st, 2017 at 12:32 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.