Foot Locker (FL) has been a major beneficiary of the heated battle between Nike and Under Armour to churn out the latest and greatest footwear and apparel products. The hottest thing on the shelves right now is the Nike Lebron XII sneakers, which are selling for $200 at Foot Locker.
"Foot Locker is one of the last remaining full-price destinations for things in the mall. They are the hub for all the cool, interesting new products that Nike (NKE) and Under Armour (UA) are starting to release," said Sozzi.
Even though Foot Locker's shares have already spiked 32% this year, more than two-thirds of analysts covering the company have bullish ratings.
The next big test for Foot Locker, which also owns Champs Sports, comes when the company reports results on November 21. Investors are hoping it can top the second quarter when it posted a 39% pop in earnings thanks to big demand for athletic shoes.
Next month CEO Ken Hicks is handing the keys to the $8 billion company over to Richard Johnson, who has been at Foot Locker for nearly two decades.
