FL: The Best Consumer Stock for 2022 | Utradea

Photo by Amit Lahav on Unsplash

FL Stock Overview:

$FL — Foot Locker Corp. is an athletic footwear and apparel retailer in USA, Canada, Europe, Australia, New Zealand, and Asia. Foot Locker operates under the Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Runners Point, Footaction, and Sidestep brands, selling shoes, apparel, equipment, and licensed merchandise to their customers worldwide. Foot Locker operates approximately 3,000 stores worldwide, as well as various eCommerce platforms and mobile apps.

FL Stock Recent News:

On November 1 st, 2021, Foot Locker announced the closing of their acquisition of Atmos for $360M. Atmos is a footwear retailer in Japan with 39 Japanese based stores and 10 international stores, furthermore, Atmos has an eCommerce platform that makes up most of their sales. The acquisition is great for Foot Locker as they continue to expand their business in Asian and Japanese markets.

FL Stock Management Team:

This sectioned is designed to give you (the reader) insight into the background of the highest (executive) managers/officers at Asbury. The following people are listed as the highest-ranking members of the Foot Locker Management Team.

FL Stock Competition:

In order to undergo the comparable analysis, we need to get an idea of other public companies that have stocks that rival FL stock. These competitors must operate in the same space, operate in similar geographies, be of similar market cap, and have valid financial ratios. Using this criterion, I came up with the following.

  • $HIBB — Hibbett Inc:Hibbett Sports retails athletic-inspired fashion products in small and mid-sized communities in the United States. Its stores offer a range of merchandise, including athletic footwear, athletic and fashion apparel, team sports equipment, and related accessories. Currently, there are 1,067 Hibbett retail stores, which include 882 Hibbett Sports stores, 167 City Gear stores, and 18 Sports Additions athletic shoe stores. It also sells its products through online
  • $ANF — Abercrombie & Fitch Co: Abercrombie & Fitch is a specialty retailer that operates in North America, Europe, Asia, and the Middle East. Abercrombie & Fitch is the parent company to the following brands: Abercrombie & Fitch, Abercrombie Kids, Hollister, Gilly Hicks, and Social Tourist.
  • $GCO — Genesco Inc: Genesco is a retailer and wholesaler of footwear, apparel, and accessories. Their Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail/online chains. Their Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. Their Johnston & Murphy Group segment is involved in the retail, and e-commerce distribution of footwear, apparel, and accessories. Their Licensed Brands segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands.
  • $GES — Guess Inc:Guess? Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories. The company’s clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, knitwear, and intimate apparel. It also designs/distributes other products, such as eyewear, watches, handbags, footwear, kids’ and infants’ apparel, outerwear, fragrance, jewelry, and other fashion accessories, as well as to certain wholesale partners to operate and sell products through licensed retail stores.

FL Stock Financial Information:

  • Q3 2021 Financial Performance (Good): In Q3 2021 (vs Q3 2020), Foot Locker was able to grow their revenues by 4%, reduce their cost of sales by 2%, increased their gross margins to 34.7% from 30.9%, and increased their income from operations by 10%.
  • Q3 2021 Financial Performance (Bad): In Q3 2021, Foot Locker’s seemed to have a great performance, however, their net income decreased by 40%, and their EPS decreased by 40% as well These 2 metrics are very important and give a better indication of their financial performance.

FL Stock Investment Valuation:

Comparable Analyses:

FL Price Prediction & Plan:

My plan for an investment in the $FL stock would go as follows:

  • Enter into a position below fair value near their lowest comparable (P/S) of $41.85/share. This makes us certain that we are buying $FL stock at/below fair value.
  • Hold long-term and re-evaluate the position as new data is released (especially their financial reports to see if they continue their growth, or if their growth starts to fall short of expectations).

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