Below is a note from CEO Keith McCullough on why we're adding Foot Locker (FL) to the short side of Investing Ideas:
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Staying with high-quality SELL ideas that have bounced to lower-highs on #decelerating volume, here's what Brian McGough had to say about Foot Locker (FL) in a recent Institutional Research note (post the Nike conference call): "I have not heard a more bearish conference call for Foot Locker since 2002 when both companies where at each other's throats. All Nike talked about were new digital capabilities designed to reignite Direct-to-Consumer growth for Nike – which already grew at an impressive 36% this quarter (12% including company retail). Digital demand sensing, consumer data and analytics, connected inventory, digital product design and creation, a digital content engine, and a new enterprise resource platform. This is end to end and the initiatives were so numerous I could almost not keep track. SNKRS app launching globally, sounding bullish about the new jet.com (WMT) curation initiative, and how (my interpretation) Amazon is going to have to play catch up with jet.com on such a holistic approach to sourcing product across multiple price points (that I think will overlap with those sold at FL). There was almost no mention of initiatives that will drive consumers to a mall to buy kicks at a Foot Locker, and certainly nothing that will lead FL to accelerate its own ecomm business." Sellem on green, KM |
