For the third quarter, Foot Locker, Inc. (NYSE:FL) was the Fund’s leading performer, returning over 24% and contributing 36 basis points in performance. The company reported a strong second quarter, with both earnings per share and same-store sales beating consensus estimates. This came after a slight same-store sales growth disappointment in the first quarter and seemed to reverse what had been deteriorating sentiment about Foot Locker. In our view, this is a positive change from the first quarter, when same-store sales growth fell short, prompting a selloff. Foot Locker also bought back over 3 million shares, taking advantage of its relatively low share price. The company also benefited from a number of recent basketball shoe launches (Air Jordan, Stephen Curry, Kevin Durant, LeBron James models).
From Keeley Mid-Cap Dividend Value Fund third-quarter 2016 commentary.
