Did anyone catch Foot Locker’s announcement that it entered into a 4-year revolving credit facility? Now why would a retailer with zero debt, $400mm in cash, and relatively predictable cash flow need this? Yes, there is a New Reality out there, and maybe the company is proactively managing for any additional ugliness to come. But this management team rarely does anything proactively. My money is on FL prepping to buy an asset on the cheap. Its acquisition history is spotty at best, but at least it’s better than its plans to grow new concepts organically (remember Footquarters?). The perfect add-on for Foot Locker? Hibbett Sporting Goods. The only problem there is that Dick’s would want it too.
