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Foot Locker (FL) Rides High on Growth Strategies: Apt to Hold
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Foot Locker, Inc. (FL - Free Report) seems to be a decent pick, thanks to its robust business strategies. Management has been investing significantly in reinforcing its digital presence and direct-to-consumer (DTC) operations. FL is focused on improving performance through its operational and financial initiatives. Shares of this athletic footwear and apparel company have appreciated 19.1% over the past six months compared to the industry’s 3% gain.
Let’s Delve Deeper
Foot Locker is effectively managing inventory, investing in digital platforms and improving supply-chain efficiencies. The retailer has been augmenting its e-commerce platform, tapping into underpenetrated markets and opening Power Stores for a while. During third-quarter fiscal 2022, the company’s digital sales penetration rate was 16.3%, up from 15.3% recorded in fiscal 2019.
We note that the company remains on track to bolster its omnichannel capabilities by adding new functionalities. The company has activated a Shop My Store feature on its website. Moreover, the company added Apple Pay and Google Pay to digital payment options for providing greater flexibility, as well as convenience to customers. Apart from these, the company is enhancing buy online and pickup in-store capabilities as well as elevating its mobile app experience.
Image Source: Zacks Investment Research
Foot Locker is constantly accelerating its efforts, including greater diversification of merchandise and vendor mix, the rollout of important growth banners and the implementation of the cost-savings program. FL had earlier announced a cost-optimization initiative, expecting the program to deliver $200 million of annual savings after being completely executed.
Additionally, FL is advancing well with the membership program FLX, inspiring customers to remain within the Foot Locker portfolio of banners. Management remains encouraged to continue refining FLX, globally. International expansion is another major catalyst.
Furthermore, Foot Locker’s investments are directed toward community-based power stores in markets worldwide. Management plans to spend a major portion of the capital on its fleet of stores, including revamping and remodeling the same.
During the fiscal third quarter, Foot Locker opened 24 stores and remodeled or relocated 23 outlets. The company closed 29 stores during the aforementioned period. For the fourth quarter of fiscal 2022, management expects to open roughly 20 stores. It has plans to shut down nearly 85 stores in the aforementioned period. Foot Locker anticipates capEx to be approximately $275 million in capital expenditures during fiscal 2022.
Wrapping up, Foot Locker appears to be well-poised for growth, based on the aforementioned strengths. An impressive long-term expected earnings growth rate of 32.3% coupled with a VGM Score of B shows the potential of this current Zacks Rank #3 (Hold) stock.
Tecnoglass manufactures and sells architectural glass and windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 43.4% and 82.2%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Wingstop, which franchises and operates restaurants, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average.
The Zacks Consensus Estimate for Wingstop’s current financial-year sales and earnings per share suggests growth of 25.5% and 23%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 5.8% for three-five years.
Capri Holdings, a global fashion luxury group of iconic brands like Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and earnings per share suggests growth of 0.9% and 10.5%, respectively, from the corresponding year-ago tallies. CPRI has a trailing four-quarter earnings surprise of 21%, on average.
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Foot Locker (FL) Rides High on Growth Strategies: Apt to Hold
Foot Locker, Inc. (FL - Free Report) seems to be a decent pick, thanks to its robust business strategies. Management has been investing significantly in reinforcing its digital presence and direct-to-consumer (DTC) operations. FL is focused on improving performance through its operational and financial initiatives. Shares of this athletic footwear and apparel company have appreciated 19.1% over the past six months compared to the industry’s 3% gain.
Let’s Delve Deeper
Foot Locker is effectively managing inventory, investing in digital platforms and improving supply-chain efficiencies. The retailer has been augmenting its e-commerce platform, tapping into underpenetrated markets and opening Power Stores for a while. During third-quarter fiscal 2022, the company’s digital sales penetration rate was 16.3%, up from 15.3% recorded in fiscal 2019.
We note that the company remains on track to bolster its omnichannel capabilities by adding new functionalities. The company has activated a Shop My Store feature on its website. Moreover, the company added Apple Pay and Google Pay to digital payment options for providing greater flexibility, as well as convenience to customers. Apart from these, the company is enhancing buy online and pickup in-store capabilities as well as elevating its mobile app experience.
Image Source: Zacks Investment Research
Foot Locker is constantly accelerating its efforts, including greater diversification of merchandise and vendor mix, the rollout of important growth banners and the implementation of the cost-savings program. FL had earlier announced a cost-optimization initiative, expecting the program to deliver $200 million of annual savings after being completely executed.
Additionally, FL is advancing well with the membership program FLX, inspiring customers to remain within the Foot Locker portfolio of banners. Management remains encouraged to continue refining FLX, globally. International expansion is another major catalyst.
Furthermore, Foot Locker’s investments are directed toward community-based power stores in markets worldwide. Management plans to spend a major portion of the capital on its fleet of stores, including revamping and remodeling the same.
During the fiscal third quarter, Foot Locker opened 24 stores and remodeled or relocated 23 outlets. The company closed 29 stores during the aforementioned period. For the fourth quarter of fiscal 2022, management expects to open roughly 20 stores. It has plans to shut down nearly 85 stores in the aforementioned period. Foot Locker anticipates capEx to be approximately $275 million in capital expenditures during fiscal 2022.
Wrapping up, Foot Locker appears to be well-poised for growth, based on the aforementioned strengths. An impressive long-term expected earnings growth rate of 32.3% coupled with a VGM Score of B shows the potential of this current Zacks Rank #3 (Hold) stock.
Solid Picks in Retail
We highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Wingstop (WING - Free Report) and Capri Holdings (CPRI - Free Report) .
Tecnoglass manufactures and sells architectural glass and windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 43.4% and 82.2%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Wingstop, which franchises and operates restaurants, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 5.8%, on average.
The Zacks Consensus Estimate for Wingstop’s current financial-year sales and earnings per share suggests growth of 25.5% and 23%, respectively, from the year-ago reported numbers. WING has an expected EPS growth rate of 5.8% for three-five years.
Capri Holdings, a global fashion luxury group of iconic brands like Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and earnings per share suggests growth of 0.9% and 10.5%, respectively, from the corresponding year-ago tallies. CPRI has a trailing four-quarter earnings surprise of 21%, on average.