Foot Locker not as smelly as people think

Well, the days of Foot Locker flirting with the $80 range look to be long gone don’t they.

I was all about FL when I picked up a share for $76.77 back on May 5. Now, though, it’s all the way down to $48.20 as of Wednesday’s close. It was down $2.51 (4.99%) on the day and slumped $28.57 (37.22%) since I added it to my portfolio.

Ouch, right?

It stings a bit, I’ll admit, but I’m honestly not as concerned as you might think. Part of the reason is because I only own one share, but that’s not the only reason. In fact, I’m actually thinking about picking up some more.

Take that Amazon Prime Wardrobe.

I know, I know … Amazon Prime Wardrobe – the main reason the stock spiraled down to new lows this week – is going to be the bomb. You can get clothes and shoes, including kicks from Nike, and try them on in the comfort of your own home, but does that really mean Foot Locker as we know it is obsolete?

I really don’t think so. Amazon is literally scaring the crap out of everyone. That said, that fear shouldn’t force you to sell every retail stock you own. Amazon sells everything, but it can’t sell everything. Make sense? What I mean by that is simple: Amazon sells things, shoes and apparel in this case, that can be bought at other places … like Foot Locker. But it can’t sell every shoe and every jersey to everyone who wants them. Some people may forgo the in-store route and use Amazon now that the option is available, but not every consumer will jump ship. I really don’t think all these retailers are suddenly going to become afterthoughts. Things will settle down.

Amazon and Foot Locker can both sell shoes, right?

Anyway, the Amazon Prime Wardrobe news and the way FL stock reacted was my biggest takeaway from today. FL was my worst performing stock by far … and has been since I opened a position last month. My best performing stocks were Amgen and Gilead Sciences, which both popped more than 3%.

I also received a pair of dividends – a combined $1.02 from Qualcomm ($0.57) and Avery International ($0.45) – although they hardly negated the flop from FL. The dividend from QCOM was $0.04 higher than the one the company paid me back in March, which was nice. The divi from AVY marked my first payment from the company.

That’s all for now … thanks for reading.


Leave a Reply

%d bloggers like this: