FOOT LOCKER

Analysis of Foot Locker share price

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If you want to invest in the Foot Locker share price, this article is dedicated to this stock and will provide you with all the information you need for your analysis. In this article, we will take a closer look at Foot Locker and its main activities. We'll also take a look at the company's industry, including its main competitors and recent partnerships. Finally, we will explain what elements you need to analyze as part of your fundamental analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

First of all, it will be necessary to follow the investments and developments made by Foot Locker with the aim of developing in e-commerce. Indeed and with the decline in footfall in its physical stores, this transformation step is essential to the company's future growth.

Analysis N°2

The fragmentation of the market in which Foot Locker operates should also be monitored with interest, as it may allow Foot Locker to diversify into smaller companies that do not have the same operating costs as Foot Locker. In particular, investments or partnerships with emerging brands may prove interesting for the group's future growth.

Analysis N°3

Of course, it will also be necessary to follow the fashion trends in footwear, on which Foot Locker's business depends to a large extent.

Analysis N°4

It will also be necessary to keep an eye on the very strong competition in this sector of activity by closely following the major events concerning its main direct or indirect adversaries and the evolution of the market shares of each of them.

Analysis N°5

It will also be important to follow the group's development in certain specific and particularly coveted markets, such as emerging markets in which Foot Locker has been trying to position itself for many years.

Analysis N°6

Finally, we will of course also keep an eye on this company's results, which are published every year and every quarter.

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General presentation of Foot Locker

It is now time to take a closer look at Foot Locker and its industry. In fact, we are now proposing to find out in more detail what this group's activities are and how it generates its main revenues. This will help you to better understand its challenges and threats:

The Foot Locker Group is an American company specialized in distribution. More precisely, this company is currently the international leader in the world of footwear and sportswear distribution.

To better understand Foot Locker's business, it is possible to divide it into different categories according to the share of revenue it generates and in this way:

  • The sale of products in stores represents the major part of the group's revenues. In fact, this activity generates nearly 83.9% of the company's revenues. Currently, Foot Locker has a network of approximately 3,129 retail locations, including 867 Foot Locker stores, 846 Foot Locker International stores, 536 Champs Sports stores, 431 Kids Foot Locker stores, 245 Footaction stores, 46 Lady Foot Locker stores and 158 third-party stores.
  • Finally, the rest of the group's turnover, i.e. 16.1%, comes from online sales and mail order.

It should be noted that Foot Locker currently still generates nearly 71.1% of its sales in the United States.

Analysis of Foot Locker share price
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The major competitors of Foot Locker

Now let's find out who Foot Locker's main competitors are in the industry to help you study them:

Nike

First of all, the American group Nike is of course a major competitor of Foot Locker. It is based in Beaverton, Oregon, and has specialized in the manufacture of sporting goods, including footwear, apparel and equipment, since its inception in 1971.

Adidas

The German group Adidas is also a serious competitor of Foot Locker. It is a German company founded in 1949 and specializes in the production of sporting goods. The company was for a long time the leader in its sector of activity before being overtaken by Nike.

Walmart 

Finally, the last competitor of Foot Locker is the American retail giant Walmart, which offers all sorts of items, some of which are in direct competition with Foot Locker.


The major partners of Foot Locker

After having made the turn of the principal competitors of Foot Locker, we propose to you to discover its principal partners with some examples of strategic alliances recently set up by this group.

Nike

In 2017, Foot Locker teamed up with Nike to create a new edition of its Sneakeasy concept, which is an ephemeral store just for sneaker fans for the Thanksgiving holiday. The two brands have opened an ephemeral store on Wall Street.

Xbox

In 2018, it was with Xbox that Foot Locker created a partnership in the form of a contest for fans of the console and sneakers with millions of Xbox gifts to be won every minute at participating Foot Locker stores. Special events were also held in Foot Locker department stores in France, Germany and the UK. Among the prizes that customers had the opportunity to win during this event were Xbox One S consoles with the sports brand's logo, Xbox Design Lab custom controllers and Xbox Game Pass subscriptions. The only requirement to enter the competition was to spend at least £50 at participating Foot Locker stores in order to receive an Xbox Foot Locker scratch card.

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Frequently Asked Questions

Who are the major shareholders of Foot Locker today?

Currently, Foot Locker Group is owned by several large private shareholders including The Vanguard Group with 10.7%, AQR Capital Management with 5.04%, BlackRock Fund Advisors with 4.90%, Mellon Investment Corp with 4.08%, SSgA Funds Management with 4.05%, Colombia Management Investment Advisers with 3.01%, Hassirs Associates with 3.68%, LSV Asset Management with 3.01%, Investec Asset Management with 3% and Standard & Poor's Investment Advisory with 2.69%.

Should I use technical analysis or fundamental analysis of Foot Locker?

When studying the Foot Locker stock price, you should not favour one analysis over another. In fact, it is necessary to combine the signals obtained by fundamental analysis with those of technical analysis if you want to have the best possible chance of detecting future trends in this stock. Other analyses such as financial or sectoral analysis are also recommended.

Where and how to invest in Foot Locker's stock price?

Today, it is possible to invest in the Foot Locker share price in a variety of ways directly online. You can of course buy this stock and add it to your stock portfolio, but you can also use specific instruments such as CFDs to speculate on its price up or down.

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