Gilford Securities Has Buy Rating On Foot Locker (FL)

Gilford Securities has a Buy rating and a $25-$30 price target on shares of Foot Locker, Inc. FL. In the research report Gilford Securities writes, "CEO Hicks began repositioning Foot Locker a year ago and got about 70% toward his goal of broadening the merchandise assortment by the holiday season. FL should be 100% there in the spring. Assortment refinements will continue after that. Repositioning of Foot Locker, Footaction, Champs, Lady Foot Locker and Kids Foot Locker has a long way to go. Sales of basketball shoes, FL's primary category, have revived a year or more of rising sales seems likely. Foot Locker added more running shoes, a hot category—its running shoes sales should be strong in the spring. Foot Locker's 2Q/10 same-store sales rose 2.5%. With assortments 50% toward Hicks' objective, the gain jumped to 8.1% for 3Q/10. Gains were near 10% in September and October. We assume FL had a similar gain in November, as 4Q/10 began. Guidance for 4Q/10 assumes a mid-single digit same-store gain." Shares of FL lost 27 cents today to close at $19.54, a loss of 1.36%.