How Foot Locker Plans to Jump Higherhttp://www.fool.com/investing/general/2013/05/23/how-foot-locker-plans-to-jump-higher.aspx Dan Caplinger
May 23, 2013
Tomorrow, Foot Locker (NYSE: FL) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.
With its traditional business model of selling name-brand athletic apparel and shoes from a variety of manufacturers, Foot Locker looks like an old-style retailer compared to the direct-to-retail brand-name stores that have popped up in recent years. Yet, despite the challenges of increased competition, the retailer hasn't shied away from making moves to boost its own future prospects. Let's take an early look at what's been happening with Foot Locker over the past quarter, and what we're likely to see in its quarterly report.
Stats on Foot Locker
Can Foot Locker's earnings run faster this quarter?
Foot Locker has been riding a wave of strong growth lately, with its previous quarterly report showing earnings gains of 28% on 14% higher revenue, and same-store sales gains of nearly 8%. Even though the stock dropped on the news because expectations were even higher, the retailer's performance is impressive given the amount of competition Foot Locker faces. In particular, Nike's retail stores put the shoe giant in the awkward position of competing with Foot Locker and other traditional retailers, and tha