Foot Locker (NYSE:FL)(FL - $41.92 – NYSE) is leading athletic shoe and apparel retailer. The company’s stock fell this past quarter after posting disappointing first-quarter earnings, reducing full-year earnings guidance, and issuing below-consensus same-store sales guidance for the second quarter. Foot Locker also bought back little stock in the first quarter, which pressured earnings, as share buybacks are part of its earnings growth algorithm. Despite its less-than-stellar earnings release, Foot Locker has several quarters ahead with easy same-store sales comparisons. Also, the company reaffirmed its guidance of mid-single-digit same-store sales growth for the full year. Furthermore, the turnaround at Nike, which is Foot Locker’s most important partner, continues to progress nicely. Shares remain inexpensive, particularly given the strong longer-term targets that management issued at the March 28 analyst day.
From Keeley Asset Management Corp (Trades, Portfolio)'s Keeley Mid Cap Fund second-quarter 2019 shareholder letter.
