Shoes retailer Foot Locker Inc. (NYSE: FL) continues its upward trajectory. FL quotes have approximately tripled since August 2020 as a result of continued strong sales.
At last check-in current trading, Foot Locker Inc. (FL) shares were up 0.60% at $63.67. FL’s stock closed the last session at $63.29. Shares of the company traded between $62.6304 and $64.10. The volume of shares exchanged was 0.99 million, lower than its 50-day daily volume of 1.47 million and lower than its year-to-date volume of 1.72 million. It has increased 118.05% over the past 12 months, and in the past week, it has increased 3.44%. The stock has gained 66.98% over the past six months and 26.83% over the past three months. Since the start of the year, the stock price has returned 57.44%. Furthermore, the price-to-earnings ratio of the stock is 10.54.
FOOTLOCKER’s business was negatively impacted by the COVID-19 crisis in 2020. Approximately half of the shops were closed, and walking, athletic activities, and other leisure activities that require athletic shoes were limited. Although Foot Locker’s cash flow is now increasing, it is returning to normal business operations. Although this may seem discouraging, the company expects to increase its profitability by the end of 2021 due to rising consumer demand for premium products.
Compared to the past year, all segments showed growth in the first quarter of 2021. Shoes are the company’s main business. Revenues are up 70%, not just because of the opening of new locations, but also due to online sales. It is encouraging to see that users show strong interest in all its brands, including Nike and Crocs. Please keep in mind that not all Foot Locker stores have opened in Europe and Canada in the first quarter.
Foot Locker Inc. (NYSE: FL) found that it wouldn’t need a massive marketing campaign to attract customers. After the pandemic, the gross margin approached 35 %, compared to 33 % before and 23 % during COVID-19.
During this year, Foot Locker plans to close its not-so-profitable stores, primarily those located in malls. Moreover, the company will open independent retailers in more profitable locations, and E-commerce will be expanded. Several new initiatives and successes have contributed to Foot Locker’s upward trend.