Foot Locker, Inc. (FL Quick QuoteFL - Free Report) appears encouraging due to its robust business strategies. The company is effectively managing inventory, investing in digital platforms and improving supply-chain efficiencies.

Management has been reinforcing the company’s digital presence and direct-to-consumer operations. Its FLX membership program appears commendable. Impressively, shares of this athletic footwear and apparel company have appreciated 43.3% over the past six months against the industry’s 9.3% decline.

Additionally, analysts look optimistic about this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for earnings per share of $4.49 for fiscal 2022 and $4.36 for fiscal 2023 has increased 3% and 2.3%, respectively, over the past 30 days. An impressive long-term expected earnings growth rate of 32.3%, coupled with a Value Score of A, highlights strength.

Let’s Delve Deeper

We note that FL has been adding new functionalities to bolster omnichannel capabilities. The company has activated a Shop My Store feature on its website. It has added Apple Pay and Google Pay to digital payment options for providing greater flexibility and convenience to customers.

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Apart from these, Foot Locker is enhancing buy online and pickup in-store capabilities and elevating its mobile app experience. In the third quarter of fiscal 2022, the company’s digital sales penetration rate was 16.3%, up from the 15.3% recorded in fiscal 2019.

Foot Locker remains focused on improving its performance through operational and financial initiatives. It is constantly accelerating its efforts, including the greater diversification of merchandise and vendor mix, the rollout of growth banners and the implementation of the cost-savings program. FL earlier announced a cost-optimization initiative, expecting the program to deliver $200 million in annual savings after being completely executed.

Additionally, the retailer is progressing smoothly on its FLX membership program, 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 the revamping and remodeling of the same. For the fourth quarter of fiscal 2022, management expects to open roughly 20 outlets and plans to shut down nearly 85 stores.
 
Thus, Foot Locker appears well-poised for growth due to the aforementioned strengths.

Solid Picks in Retail

We have highlighted three better-ranked stocks, namely Tecnoglass (TGLS Quick QuoteTGLS - Free Report) , Chico's FAS and Wingstop (WING Quick QuoteWING - 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 of 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 EPS suggests growth of 11.2% and 9%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.

Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.

The Zacks Consensus Estimate for Chico's FAS’ current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.

Wingstop, which franchises and operates restaurants, currently sports a Zacks Rank #1 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 EPS suggests growth of 18.4% and 16.1%, respectively, from the year-ago reported figures.