Is Another Potential Acquisition Coming For Foot Locker? Analyst Looks At European Market

Foot Locker, Inc. (NYSE: FL) might be eyeing an acquisition in Europe, according to a report from Wedbush.

The Analyst

Wedbush analyst Christopher Svezia maintains an Outperform rating with a $64 price target.

The Thesis

Foot Locker appears to be looking into investment or acquisition opportunities in Europe, according to a recruitment posting on one of the company’s websites, Svezia in an analyst note on Monday.

Although the analyst says there is no concrete information to suggest any imminent announcements, the company appears to be looking to expand to the sneakerhead market in Europe by way of acquisition.

“Foot Locker appears to be interested in investments or acquisitions in Europe in the mold of some of its recent activity over the last 18 months like GOAT Group and Carbon 38, in line with strategy laid out at its March Investor Day,” Svezia wrote in a note.

Based on the firms research, Sneakernstuff, Titolo, Foot District, BSTN, Solebox, Consortium, SNKRS/Sneakers.fr and Presented by / KLEKT were some of the potential acquisition targets that would fit into Foot Locker’s strategy outlined at the company’s investor day in March.

Svezia said the company’s recent partnership with GOAT Group should help it internationally as well, by providing digital native and physical access points.

The speculation of a potential acquisition comes as Foot Locker revised its FY2019 guidance on expectations of lower share repurchases.

Price Action

Foot Locker shares were down about 1% at $42.70 Monday afternoon.

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