Foot Locker, Inc.
) touched a new 52-week high of $39.22 on Nov 29, 2013 and
eventually closed trade at $38.89. The stock gained momentum from
the company's better-than-expected third-quarter fiscal 2013
results. This apparel-footwear and accessories retailer has
amassed a year-to-date return of nearly 26.0%.
The average volume of shares traded over the last 3 months was
approximately 1,911.7K. Moreover, the company currently trades at
a forward P/E of 14.0x, a 16.9% discount to the peer group
average of 16.85x. The last traded price is 10.0% below the Zacks
Consensus average analyst price target of $43.22. Additionally,
the company's long-term estimated earnings per share (EPS) growth
rate is 9.5%.
Investors are optimistic about this Zacks Rank #2 (Buy) stock as
it posted EPS of 68 cents that beat the Zacks Consensus Estimate
by a penny and rose 7.9% year over year. Driven by solid
comparable-store sales (comps) performance, Foot Locker's sales
for the quarter rose 6.4% year over year to $1,622 million and
handily surpassed the Zacks Consensus Estimate of $1,586 million.
The year-over-year growth in bottom line was primarily driven by
strong top-line performance, effective cost management and fall
in share count.
Foot Locker's expansion strategy is also impressive. The company
opened 28 stores and remodeled/relocated 118 stores, while it
shut 13 stores during the third quarter. As of Nov 2, Foot Locker
operated 3,510 stores across 23 countries in North America,
Europe, and Australia. Apart from this, the company has 45
franchised Foot Locker stores in the Middle East and South
Africa. Moreover, in Germany and Switzerland, Foot Locker has 27
franchised Runners Point and Sidestep stores.
Further, Foot Locker's history of positive earnings surprises
also convinces investors about its future performance. We observe
that the company has beaten the Zacks Consensus Estimate in the
past 10 quarters by an average of 3.8%.
Apart from Foot Locker, other retail stocks such as
Tiffany & Co.
) achieved new 52-week highs of $54.07, $237.18 and $89.72,
respectively, on Nov 29, 2013.
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