UPDATE: Jefferies Color on Foot Locker Initiation

Jefferies, which initiated coverage of Foot Locker, Inc. FL, is providing some color on the stock. “FL is riding a powerful running and basketball sneaker trend with margins in an upward trajectory against a tight expense and inventory backdrop,” Jefferies writes. “Cost inflation seems manageable, while a 3% dividend yield and share repurchases provide valuation support. Nevertheless, a looming NBA lockout creates uncertainty, leaving us on the sidelines until a new collective bargaining agreement is reached.” Foot Locker closed Thursday at $23.87.