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Foot locker is reporting its fourth quarter results after the bell tomorrow the athletic retailer has posted seven straight quarters of year over year sales and profit gains -- But is it on track to make it eight in a -- to impose a senior research analyst at Sterne -- joins us now with some insight so what do you think buy sell hold ahead of the earnings tomorrow afternoon.
We would buy it we would by the stock ahead of the earnings we we like what they're doing we think there's a lot of upside to the numbers given given the strength in the athletic trends and -- and and just in general the mall the mall -- -- cuts are picking up.
Share from other from other parts of the.
So it's good to be in the mall I noticed that your price target is pretty close to where we are right now you have -- -- thirty and I think it's trading at a we have a chart -- -- mean change or something like a would you sell it at thirty.
What we're waiting we're waiting to find out what they say I was 2927 -- and the answer is right close to your price.
-- -- guys who are basically.
You know we don't have anything to tell us for sure that the numbers are gonna are are gonna beat our expectations or beat the the street's expectations but given given the trends out there -- given how they were running -- the -- single digits.
-- -- that's -- good news out of their Q3 call I think that the trends have improved from what we've seen since that -- -- So what is it that's driving that I mean what makes them stand out because it's certainly easy to buy athletic Wear whether you're out in the street -- buying an online what do they have that's a special.
Well it's have what's happening is as they have brands like Nike Under -- indeed it is and others that are all coming out just lots of -- And basically there with having new innovations and so on it's very easy to raise price.
Don't get better pricing and so on.
And they've also gotten a lot better merchandising -- store.
Making sure there and and having the appropriate sizes and -- store so when you go -- you actually find what you're looking for we've also seen recently there's with the -- all the above about the phone posit that -- last week and causing all the uproar or.
Back right before Christmas they had the other one of the big night when -- big Jordan shoes launch and and so they have exclusive says that it's not that -- there -- a lot of exclusive I think about.
-- be about 5560% of their goods are exclusive either by style or -- color way.
But there's just.
There's there's a lot of people to collect some of these -- issues and their help put out there and very limited quantity so it it -- gathers a lot of excitement when they come back out.
On the flip side of the you have new lightweight there's about lots of lightweight technologies going on from from everybody.
From my community -- -- Which which is stuff that those kids just don't have its all new and it's exciting.
But did have the money go -- -- get an apparently an economy where people are hurting and don't have discretionary income that seems like orange sneakers are sort of the last thing I would spend my money on right now well as -- me but I mean yes but you're not -- -- -- -- twelve to 22 year old kid here.
Do they have a lot of disposable it's not a it's not that they don't abdomen after remembered -- -- -- -- -- might.
My clients everybody is sick of having to use this example but.
You know the iPhone when it launched and it -- iPhone three when it launched in June 2009 arguably the economy with absolutely dreadful that's -- are risking losing their jobs.
But people lined up for two days to bias to be the first one -- -- -- spend 200 dollars plus that.
But that -- and at the time the -- business was lousy so there was so there was.
So there was money coming out of one thing it's all share of pocket for these kids so yeah see some of the teen retailers not doing quite as well.
Arguably those kids are up all know they're buying shoes instead of that it just all -- -- pocket situation.
Yeah no and it could add it could add up to be down in total but.
But there's the haves and have nots in this in this in this trip aren't makes a lot of sense we'll look forward to seeing those earnings after the bell tomorrow thank you for the preparation and -- have a great.
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