|Bid||27.78 x 900|
|Ask||28.00 x 3100|
|Day's range||27.21 - 28.27|
|52-week range||17.46 - 47.86|
|Beta (5Y monthly)||1.29|
|PE ratio (TTM)||6.16|
|Earnings date||21 Aug 2020 - 25 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||16 Apr 2020|
|1y target est||31.38|
(Bloomberg) -- Across the U.S., sales are cratering, bankruptcies are on the rise, and unemployment has hit unprecedented levels. With consumers glued to the couch watching Netflix or commiserating over Zoom, retailers have been especially hard hit. Yet even as the coronavirus pandemic wreaks havoc on American malls and main streets, a billionaire from Prague sees something in the wreckage: bargains.On May 11, Vesa Equity Investment, a private equity firm controlled by Daniel Kretinsky, a 44-year-old investor little known outside of finance circles, disclosed it had acquired a 5% stake in Macy’s Inc., the troubled department store chain that has seen its stock nose-dive by more than half this year. Then on May 18, Vesa said it had bought 6% of sneaker-seller Foot Locker Inc., whose shares are off by a quarter. In a filing with the Securities and Exchange Commission, Vesa said it planned to “engage in constructive discussions” with Macy’s. While analysts pondered what that might entail, some had a more fundamental question: Who is this guy?“I had to look him up,” says David Swartz, an analyst with Morningstar Inc. who covers retailers. “I’d never heard of him.”Over the last few years, Kretinsky has emerged as a contrarian financier with a taste for industries others avoid, assembling an eclectic portfolio ranging from power plants and supermarkets to media companies and even the U.K.’s privatized Royal Mail Plc. The strategy has paid off: In the last three weeks, Kretinsky’s net worth has climbed by $100 million, according to the Bloomberg Billionaires Index.World’s Richest Spend $1 Billion on ‘Bargains of a Lifetime’Kretinsky can come across as a cold-eyed capitalist unafraid to challenge boards of companies in his portfolio and invest in unfashionable assets such as coal. Yet he also casts himself as a steward of liberal values and independent debate as owner of Czech newspapers and French media properties, including a minority stake in Le Monde, the prestigious Paris daily.He rarely speaks publicly and grants few interviews to explain his approach, prompting a Polish magazine to dub him the “Czech Sphinx.” Kretinsky, who tested positive for coronavirus in March and worked from home as he recovered from what he said felt like a light cold, declined to comment for this article.While his eye for value has helped Kretinsky build a $1.8 billion fortune, he’s also suffered setbacks. The journalists at Le Monde have bristled at the ownership of a tycoon who made his money in fossil fuels. And in 2019, the board of the German retailer Metro AG rejected his $6.5 billion takeover bid. Rather than publicly assail Metro’s management as many activist shareholders might have done, Kretinsky opted to bide his time. He upped his stake in the German company to 29.9% and asked for a board seat, promising to contribute ideas for improving profitability. Despite that manifest patience, opponents shouldn’t underestimate Kretinsky’s ambition, says Josef Kotrba, head of accounting firm Deloitte’s Prague office.“He’s this soft-spoken, elegant man, and unlike many of his peers, kind of friendly,” says Kotrba, whose office has done work for Kretinsky’s businesses. “You wouldn’t guess he’s a shark.”Kretinsky got his start in 1999 as a lawyer at Czech private bank J&T, where he earned about $900 a month. Ten years later, he formed his own outfit, EPH, with the backing of partners from J&T and Czech billionaire Petr Kellner, and zeroed in on an energy sector beaten down by the global financial crash. As the European Union sought to phase out fossil fuels, Kretinsky wagered it would take a long time to wean the region off carbon. So he acquired natural gas pipelines and power plants that burn coal, including lignite, an especially dirty form of the fuel. That paid off as those plants continued to operate. EPH has since moved into renewable energy, logistics, and real estate, and today it comprises 70 companies in almost a dozen countries in Europe, with assets valued at 13.3 billion euros ($14.6 billion).“We want to make money in industries that are dying because we think they’ll die much more slowly than the general consensus says,” Kretinsky told university students during a 2015 speech in Prague. “Going with the crowd and following trends is always a mistake.”By 2017, Kretinsky had decided to invest his growing personal fortune outside the energy sector. So he joined forces with Patrik Tkac, the chairman of J&T Banka, to form Vesa, with Kretinsky holding a 53% stake. These days, he’s clearly not following the herd. With stalwarts such as J.C. Penney Company Inc. and Neiman Marcus Group Inc. declaring bankruptcy this month, analysts say a reckoning is at hand for department stores long threatened by Amazon.com Inc. and the decline of the indoor shopping mall.Even before the pandemic forced Macy’s to close its 775 locations in mid-March, it was struggling to turn a profit and had embarked on a plan to shutter 125 underperforming outlets and boost digital sales. On May 21, the biggest U.S. department store chain, with sales of $25 billion last year, gave a preview of the damage to come, telling investors to expect a $1.1 billion loss in operating income in the first quarter. Foot Locker has been similarly battered and on May 22 reported it lost $98 million in the first quarter, versus net income of $172 million in the same period in 2019.With both chains starting to reopen, investors will be watching to see how business rebounds in an era of social distancing and anxiety. “What does a store have to do to make you comfortable?” says Sam Poser, an analyst with Susquehanna Financial Group in New York who covers the apparel industry. “There are so many questions yet to be answered.”Kretinsky has long sought to expand in the U.S., and his decision to buy into the two companies is consistent with his ongoing shift from energy to retail; In addition to his stake in Metro, he is the No. 2 stockholder in French supermarket chain Casino Guichard-Perrachon SA, with a 7% stake.Still, given the uncertainty around reopening the U.S. economy, even people who’ve long known Kretinsky were taken aback by his decision.“It is quite surprising, but I am sure there’s more to it than just widening his portfolio,” says Michal Snobr, a Czech investor who used to work with Kretinsky at J&T. “It may be a bet on some future development, like when he bought assets in Germany that everyone dismissed but have turned out to be a great investment.”In any event, Kretinsky is now a top five shareholder in two of the most famous brands in American retail. Foot Locker, with sales clerks dressed like zebra-shirted referees, has been a staple of malls for more than 40 years. And the Macy’s Thanksgiving Day Parade, with its gigantic inflatable cartoon characters floating through Manhattan toward its flagship store on Herald Square, has been an autumnal ritual since 1924.In the short term, at least, Kretinsky’s timing is on target. After falling off a cliff in early March, shares of both companies have stabilized in the last month. The Czech billionaire is betting the worst is over.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Crocs (NASDAQ: CROX), Coty (NYSE: COTY), and Foot Locker (NYSE: FL), an assortment of retailers, jumped 10% or higher Tuesday morning as the markets received positive news about consumer sentiment and COVID-19 vaccines. Retailers got a little spark of hope Tuesday when U.S. consumer confidence moved slightly higher in May, suggesting the worst of the economic impact could be behind us as more states open up parts of the economy and reduce restrictions. Consumer confidence moved to 86.6 in May, up from the downwardly revised 85.7 recorded in April.
Not only was Best Buy a stronger company heading into the crisis, but its relative strength over Foot Locker is also only likely to accelerate in the months and years ahead. Both companies reported their first-quarter results last week, illustrating the key differences in their business models, sensitivity to stay-at-home orders, and giving a sneak peak into why Best Buy is the more solid pick of the two. During the May quarter, in which Best Buy, Foot Locker, and other retailers were forced to shut their doors to customers, Best Buy's business resilience was clearly on display.
The latest in a growing set of examples is athletic apparel and sneaker specialist Foot Locker (NYSE: FL), the stock price of which dived after the company posted its Q1 fiscal 2020 results on Friday. For the quarter, Foot Locker's sales came in at just under $1.18 billion, down a steep 43% from the same period last year. Although Foot Locker has been reopening stores as permitted lately, the shutdowns engendered by the SARS-CoV-2 coronavirus outbreak badly affected the company.
Disappointing first-quarter results are hitting the stock price, but Foot Locker's long-term story remains intact.
Good morning, ladies and gentlemen, and welcome to Foot Locker's First Quarter 2020 Financial Results Conference Call. This conference may contain forward-looking statements that reflect management's current views of future events and financial performance. Management undertakes no obligation to update these forward-looking statements, which are based on many assumptions and factors, including the impact of COVID-19, effects of currency fluctuations, customer preferences, economic and market conditions worldwide, and other risks and uncertainties described more fully in the company's press release and in reports filed with the SEC, including the most recently filed Form 10-K and Form 10-Q. Any changes in such assumptions or factors could produce significantly different results and actual results may differ materially from those contained in the forward-looking statements.
Mainland China appears to be turning toward Hong Kong's economic prowess to help the country recover from the lockdown measures that took a hammer to China's GDP over the past several months.
Foot Locker (FL) delivered earnings and revenue surprises of -294.12% and -10.59%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
Three big earnings announcements from Alibaba, Deere and Foot Locker will be in focus Friday.
What happened Shares of Foot Locker (NYSE: FL) were moving higher today, catching a tailwind along with the rest of the apparel retail sector after TJX Companies (NYSE: TJX) said that sales at the stores it had reopened were up from a year ago.
(Bloomberg) -- Daniel Kretinsky, the Czech billionaire who invested in Macy’s Inc. earlier this month, disclosed that he also bought shares in another beaten-down U.S. retailer: Foot Locker Inc.Kretinsky’s Vesa Equity Investment acquired 6% of the company’s common shares, according to a U.S. regulatory filing. His stake in the New York-based sneaker store chain has a current market value of about $169 million.Kretinsky, 44, has been scooping up shares of troubled retailers, investing last year in France’s Casino Guichard-Perrachon SA after a $6.5 billion takeover offer for Germany’s Metro AG was rebuffed. A former private-equity lawyer, Kretinsky now owns Energeticky a Prumyslovy Holding AS, one of the largest power companies in central Europe, as well as the Sparta Prague soccer team.Read more: Macy’s attracts Czech billionaire investor after share dropKretinsky declined to comment on his Foot Locker stake.Foot Locker, like other retailers, has been hit by the coronavirus pandemic. The company in March withdrew its forecast for this year and said it would temporarily shutter stores in most parts of the globe, including North America. Foot Locker shares rose 4.8% to $28.30 at 2:31 p.m. in New York trading. They’re still down 27% this year.In disclosing his 5% stake in Macy’s last week, Kretinsky, who tested positive for the coronavirus in March, said he planned to work with management to improve the department store chain’s performance. Macy’s was dropped from the S&P 500 benchmark in March and Fitch cut the company’s credit rating to junk levels last month.(Updates Foot Locker share price in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Foot Locker (FL) closes outlets in North America, EMEA and Malaysia due to coronavirus. Loss of sales from store closures and deleverage in SG&A expenses are likely to show on first-quarter results.
Shares of Skechers (NYSE: SKX), Foot Locker (NYSE: FL), and The TJX Companies (NYSE: TJX) jumped 8% or more Monday as a wave of optimism pushed markets higher thanks to comments from Federal Reserve Chairman Jerome Powell and a positive vaccine development. One source of investor optimism was provided by biotech Moderna, which announced that its vaccine mRNA-1273 was found to be safe and well tolerated in an early-stage study and that it produced antibodies in patients that could "neutralize" the coronavirus. A second source of optimism was provided by Powell, who said the Fed had plenty of ammunition left if needed, adding, "There's a lot more we can do."
Foot Locker (FL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
GameStop (NYSE: GME), Foot Locker (NYSE: FL), and The Michaels Companies (NASDAQ: MIK) plunged today with only Foot Locker avoiding a 10% intraday drop, after comments from Federal Reserve Chair Jerome Powell shook the markets. Retailers, among other hard-hit industries during the COVID-19 economic slowdown, were hoping for a swift rebound in consumer activity as some states slowly reopen parts of the economy.
Shares of athletic shoe retailer Foot Locker (NYSE: FL) moved higher by roughly 5.5% in early stock market trading on Friday. Raymond James lowered its stock price call on Foot Locker from $50 per share to $30. In fact, the broker maintained its outperform rating on Foot Locker, explaining that it remains exceptionally well positioned for success when it comes to selling premium athletic footwear.
Foot Locker (NYSE: FL) shareholders outperformed a strong market last month. The stock rose 15% compared to a 13% increase in the S&P 500, according to data provided by S&P Global Market Intelligence. Foot Locker shares moved in concert with other hard-hit retailing peers as investors celebrated signs that the Federal Reserve had forestalled a potential financial crisis last month, and that the COVID-19 threat might lessen enough to allow the reopening of parts of the economy by early May.
Shares of Foot Locker (NYSE: FL), Callaway Golf (NYSE: ELY), and Newell Brands (NASDAQ: NWL), the respective leading retailers of shoes and accessories, golfing products, and assorted consumer goods, all dropped by double digits during intraday trading Friday after a couple of developments hit retailers hard. This was partly due to gloomy reports from Amazon. Apple also reported that its growth slowed drastically compared to the prior year, and for the first time in years, it opted not to provide investors an outlook for the full year.
What happened? Foot Locker, Inc. (NYSE: FL) shares are up almost 9% just before 3 p.m. EDT on April 29, having cooled off a little after surging nearly 10% earlier in the day. Like other retailers that focus on discretionary consumer goods, high hopes for a treatment for COVID-19 have investors looking at the company as a potential winner once the economy opens back up.
Shares of Nordstrom (NYSE: JWN), Dollar Tree (NASDAQ: DLTR), and Foot Locker (NYSE: FL) were among a number of retail names making big gains on Monday as the sector got a boost from several states beginning to reopen their economies or announcing plans to do so. Last Friday, Georgia allowed nonessential retail stores and businesses including gyms and barbershops to open, and on Monday restaurants and movie theaters were given the green light to open their doors. Investors not surprisingly viewed these moves as positive steps, and a sign that the worst of the crisis is behind the retail industry.
CURO Group, Foot Locker, Microsoft, Amazon and Slack highlighted as Zacks Bull and Bear of the Day