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Foot Locker Gets Upgrade After Sales Rise with Reopenings, But Closings Are Back

Published 07/10/2020, 01:10 PM
Updated 07/10/2020, 01:12 PM
© Reuters.
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By Christiana Sciaudone

Investing.com -- Foot Locker (NYSE:FL) rose 5% after being upgraded at Susquehanna. Shares are down about 23% in 2020.

The firm bumped the shoe seller to positive from neutral after citing accelerated June sales thanks to store reopenings and a strong relationship with Nike (NYSE:NKE), according to Schaeffer's Investment Research. Shoppers may also spend additional stimulus money on sneakers versus dining out and travel.

Reopenings that had prompted sales are now being reversed across the U.S. as coronavirus infections surge throughout the country. 

The company, which has more than 3,100 physical locations around the world, reportedly saw $451.9 million in online revenue last year, according to ecommerceDB. Foot Locker said total sales for the fiscal year that ended Feb. 1 decreased 2.2% compared to a year earlier to a total of $2.2 billion.

In May, the company reported a net loss of $98 million, or $0.93 per share, for the first quarter of 2020, compared to net income of $172 million, or $1.52 per share a year earlier.

FL has four buys, eight holds and one sell, according to data compiled by Investing.com, with an average price target of $29.82.

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