Foot Locker knows cool sneakers, and that’s why stocks are rallying: Analyst

Business


Foot Locker knows which shoes are cool, and this might be why the stock rallied on Friday, Susquehanna Financial Group footwear and apparel analyst Sam Poser told CNBC.

“The customer wants to go where all the coolest sneakers are,” Poser said on “Power Lunch” Friday. “If you know what you want, you may go to Nike or Adidas or Under Armour‘s website. But, if you’re going, ‘I want the coolest sneaker, who’s going to tell me about that?’ A lot of people in the States, a lot of people all over the place, go to Foot Locker, saying, ‘They always have the best new stuff.'”

Foot Locker’s stock surged on Friday after the shoe retailer beat Wall Street’s earnings estimates. The company posted revenue of $2.03 billion, causing the shares to jump 16 percent.

The news is a bright spot in the apparel sector where companies have become increasingly fearful of e-commerce giant Amazon and brands such as Nike and Adidas are trying to cash in on the direct-to-consumer trend by selling products on their websites.

Foot Locker has not been spared in the changing landscape. Company shares are down more than 22 percent in the last year.

A 2017 UBS survey found more consumers prefer to buy Nike products on Amazon rather than at Foot Locker.

Still, with the proliferation of options available both online and in-store, Poser said, “You want someone else to tell you this is important.”



Source link

Products You May Like

Articles You May Like

Siemens wins $2 billion contract to build new London Tube trains
The Fed said it’s hiking rates four times in 2018, market not convinced
UBS Group CEO Sergio Ermotti worries Trump-China trade war threats
Stitch Fix shares pop on speculation of Oprah taking stake in company
What most people get wrong about their credit score

Leave a Reply

Your email address will not be published. Required fields are marked *