Foot Locker Needs More Time To Adapt To Recent Abrupt Industry Challenges, Says Credit Suisse Analyst

Credit Suisse analyst Michael Binetti reiterated a Neutral rating on the shares of Foot Locker Inc FL and lowered the price target from $40.00 to $38.00.
The analyst said while sneaker trends have remained strong in Q3, Foot Locker guided same-store sales conservatively.
Recent news on Adidas AG's ADDYY termination of its partnership with Kanye West and, to a lesser extent, Nike, Inc's NKE suspended relationship with Kyrie, suggest that substitute high-heat products might be insufficient to offset Nike 10pp mix reduction set to begin in Q4.
Related: No Kanye, No Problem: Adidas Plans To Sell Yeezy Shoes Under Its Own Name
Binetti sees some ways the company can offset the current headwinds to its inventory reassortment and is optimistic that CEO Mary Dillon can significantly amplify some of Foot Locker’s pathways to its energetic sneakerhead consumer.
The analyst has lowered his Q4 and FY23 Q1 estimates in the view that the company will need more time to adapt to recent abrupt industry challenges.
Price Action: FL shares are trading lower by 8.61% at $30.90 on the last check Wednesday.
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