Diamonds and Dogs
Foot Locker (FL) is cool again. The shoe retailer easily beat estimates by 21 cents as revenues rose 1.2% to $2.02 billion. As one analyst put it, Foot Locker is the spot to find all the cool shoes. So far Foot Locker has not been spared in the changing landscape. With today's rally the stock is positive for the year, but still negative year over year.
Gap (GPS) gapping lower. The apparel retailer fell 14% back to the lows of the year following lower-than-expected profits in its first-quarter as inventory issues continued to plague the company. Revenue rose 10% to $3.78 billion. The analyst at Telsey reiterated an Outperform with a $39 price target. The analyst expected some sloppiness to the first quarter comps with weakness in gross margins at the Gap brand given the receipt flow issues and the unseasonable cold weather. Hopefully, the second quarter will be better for the retailer.