Posted by: rosebc | March 10, 2011

Foot Locker’s Success Continues

The google alerts and media scanning this past week is continuing to show that Foot Locker has been dominant in their earning this quarter. This quarter their earnings reported to be $57 million up from $23 million from last year’s quarter at this time. Projections by analysts did not give Foot Locker enough credit for the year, and they continue to blow by the analyst’s projections as the earnings continue to come out. Goldman Sach’s is telling us that at this point there exists a strong footwear cycle of great product coming out from FL’s key vendors. They also say that Ken Hicks, who became the CEO on 2009 has steered the company in the right ways as it has jumped on some execustion opportunity that includes: “broadening assortments and improving apprell.” This trend does not seem to be slowing as peer results continue to be positive. The success of FL has literally become story for financial gurus to follow as time goes on. Instead of neutral status, FL is now at buy status for many financial advising agencies.

In more news, Foot Locker recently pulled their ads from MTV’s provocotive drama, Skin’s, because conservitive groups (Parents Television Council) have been outraged and said that the show should be investigated for child porn laws. PTC is claiming it is the most dangerous show ever for youth to wathch. Foot Locker, Subway, Taco Bell, and others have pulled their ads in response to the outcry. This seems to be a good move as Foot Locker recognizes their image in the eyes of those actually buying items from their stores is much more important than them appealing to the younger audience in this situation. This is the first season of the MTV drama, and FL along with the other companies were quick to drop their ads as concern from adults was raised. What is interesting to notice is that as the season went along viewership declined; thus would FL still be on board if that 3.3 million were there rather than just the 1 million that are tuning in now? Either way, FL comes out on top by going away from this sponsorship. This sums up to great financial and decision making week of Foot Locker.


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