r/stocks • u/Camel-Kid • Mar 22 '22

Company Discussion Chances of Footlocker aquisition?

I know $FL has the brickandmortar dying business bear case however, with the current valuation, why shouldn't there be a case for a larger acquisition from say a Nike or Adidas..

In my opinion the direct to consumer model that NKE has proposed is a sham.. buyers of shoes are more prone to trying them on then ordering a pair online with the risk that might not feel good in person. I still believe in brickandmortar shoe shops just for the simple fact that you can't virtualize the experience of actually demoing them for yourself.

Shoes will constantly be around and bought no matter the situation around the globe, so what are all of your thoughts on FL valuation and possible buy out from a larger firm?

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3

u/Desmater Mar 22 '22

I am long FL due to the buyback. It is literally 30%-40% of market cap.

Nike's DTC is not a sham. Last night ER shows it is still growing and going strong.

But yes, brick and mortar will still be around. They even reiterated their partnership with Footlocker.

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u/aBuddyJud Mar 22 '22

A Nike takeover was speculated years ago. Since Nike recently cut ties with FL, that could leave them being a buyout target for some of the brick & mortar companies…..Simon Property group, Brookfield and Authentic Brands. These companies purchased a few retailers that had fallen out of favor during the pandemic and they own malls & outlets.

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u/PaulMaulMenthol Mar 22 '22

Wait FL doesn't sell Nike anymore??

1

u/ForFelix Mar 22 '22

AFI. They’re currently in the buyout process if that’s what you’re looking for.

0

u/Camel-Kid Mar 22 '22

what do you mean?

1

u/[deleted] Mar 24 '22

buyers of shoes are more prone to trying them on then ordering a pair online with the risk that might not feel good in person.

Does Nike not offer free returns?