Foot Locker Slides Ahead of Earnings

Despite the lackluster year for the retail sector, some investors have started to become optimistic towards the industry especially with Macy’s ($M). One retail store that is still trailing however is Foot Locker ($FL). Athletic wear, more specifically athleisure, has grown greatly in the past few years with Lululemon($LULU) and Nike ($NKE) ahead of sector. While Foot Locker dabbles with athleisure, it is mainly a retail stock at the end of the day. With companies such as Nike constantly improving their Direct-to-Consumer sales, they are simultaneously eliminating their need for retail stores similar to Foot Locker. Nike recently broke past its pre-corona levels while Footlocker still has more than 25% to try to regain. With Footlocker earnings tomorrow, a play could be made on it toward the downside, at your own risk. In the past 8 earnings reports, the stock has trade lower in the next day session 5 times. With the unimpressive return from the crash, plus consolidation of the summer months, it seems to me that Foot Locker is not yet ready to come roaring up. A short term play to the downside ending tomorrow or next week is something that deserves to be pondered, especially since the stock has slid all week.

-Darnel Shillingford

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