Foot Locker is looking good right now, according to a note from Citigroup analyst Kate McShane. Foot Locker’s business has been on the rise this year, thanks in part to a boost in basketball shoe sales.
Here are five reasons McShane expects Foot Locker to keep things up:
1. Basketball is booming. The sporting goods sector rose 15.3 per cent from October to December of last year and should help the company make gains in shoe sales.
2. Making a buck from brands. Nike products are hitting their stride, with sales numbers staying strong.
3. Earning market share from the competition. Finish Line reported only break even profits per share in the third quarter, giving Foot Locker room to step in and gain more sales.
4. A vendor advantage. The company has a solid footing with vendor partnerships.
5. Premium has been a priority. Foot Locker added new premium products to its shelves every day during Thanksgiving week.
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