Foot Locker Case Study Answers

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Athletic retailer Foot Locker released solid results for the fourth quarter. The company is pleased with this accomplishment which were better than what analysts expected. The stock had been impressive on the stock market in the past as well and the recent results further strengthened its position in the market with a 4.2% growth in the share soon after it delivered its results. Looking ahead, Foot Locker is focused on its strategic priorities and is looking to seize opportunities that can drive its overall performance in achieving its key financial milestones. Let us have a detailed look at the overall underlying business. Financial Over-View Foot Locker reported a solid 25% growth in the net income amounting $146 million as compared to the same quarter last year. The…show more content…
If the company’s products continues to be absorbed at such a rate, Foot Locker is expecting a 20% surge in its market share as investors are expected to receive these results positively. In addition, its association with Nike is also a wise strategic move by the company which is making the brand more popular in the basketball shoes segment and this becomes a key reason for Foot Locker’s solid position in Europe. Moving ahead, Foot Locker has stretched its foot mark at several places across the nation. The company is now competing with 3424 stores. However, it can be noticed that there is a decrease in the store count by 51 stores as compared to the past. This is because Foot Locker is now mainly focusing on productive stores and is closing down the underperforming stores to improve its margins. The company is now opening larger stores and these real-estate projects are expected to add meaningfully to Foot Locker’s growth. To further support this, Foot Locker has also announced a $220 million capital spending program for
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