martinrlee/iStock Editorial via Getty Images
Foot Locker (NYSE:FL) pushed higher in early trading on Friday after Citi upgraded the retailer to a Neutral from a prior rating of Sell. Analyst Paul Lejuez noted that Nike (NKE) is shifting its focus back to the wholesale selling channel after focusing too much on digital sales.
During Nike’s (NKE) post-earnings conference call (transcript), management made it very clear that keeping strong wholesale partners is a priority.
“We’re increasing our investment in wholesale to help us elevate and grow the entire marketplace. We recognize that our wholesale partners help us scale our innovation and newness in physical stores and connect our brands in the path of the consumer.”
Lejuez sees more high heat Nike (NKE) products landing at Foot Locker (FL) stores this year to help boost sales. Citi boosted its price target on Foot Locker (FL) to $24 from $19.
Shares of Foot Locker (FL) moved up 1.48% in premarket trading to $24.00 vs. the 52-week trading range of $14.84 to $42.79. The stock is down about 22% on a year-to-date basis.
Source link
