Tuesday, FBR Capital Markets initiated coverage of Foot Locker, Inc. (FL) stock with a Market Perform rating and a price target of $11.
Analyst Eric Tracy noted that rationale for our rating stems primarily from valuation, coupled with a lack of visibility to a turn in comps, and subsequent deleverage of fixed costs, against a consumer macro backdrop that remains tenuous. As the largest mall-based athletic retailer, Foot Locker has the potential to take share from a rationalizing market, but the analyst believes that current headwinds to top-line reacceleration and an intensifying competitive landscape strain visibility to the top line.
The analyst believes management has done a solid job executing on its strategy to improve profitability with tight inventory control, reduce expenses, and capitalize on more favorable real estate renewals/transactions, but these moves may also temper comp growth over the near term.
Currently, FL is up $0.09 or 0.73% and trading at $12.44.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.