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Foot Locker Managed to Fill a Quite Large Pair of Shoes



Foot Locker News

Foot Locker (NYSE:FL) posted stronger than expected third quarter earnings as impressive same stores sales exceeded analysts’ forecasts. Analysts feared potentially bad news as the New York-based specialty athletic retailer announced surprisingly weak demand three months ago, along with the impact of tariffs. In both of the previous two quarters, the company missed profit, sales and same-store sales expectations, causing its stock to plummet about 22% in the last 12 months. But fortunately, thanks to a sales boost, this was not the case with the third quarter! The market rewarded its shares with a 3.2% rise in pre-market trading immediately following the release.

Third Quarter Results

Net Income for the quarter amounted to $125 million or $1.16 per share. It dropped comparing to the corresponding quarter last year when it was $130 million, or $1.14 per share. When adjusted for non-recurring gains, earnings came to $1.13 per share, exceeding Wall Street estimate of $1.07 per share. But moving to the good stuff, third quarter comparable-store sales increased 5.7 percent. Total sales increased 3.9 percent and reached $1,93 billion rising from $1,86 billion in the prior year quarter. It is due to a solid August for Nike (NYSE:NKE) which makes around 70% of Foot Locker revenues. Its sales in the three months ending that ended in August rose 7% to $10.7 billion on a currency-neutral basis.
As of November 2, 2019, inventories were $1,304 million, 0.1 percent lower than at the end of the same quarter last year so at least there’s no further build-up.


Finish Line is an American retail chain that sells athletic shoes and accessories. It has 660 stores in 47 states, as well as Finish Line-branded athletic shoe departments in more than 450 Macy’s (NYSE:M) stores. Macy’s is also facing the harsh reality that is upon the sector of department stores but hopefully not as bad as the one who hit Barneys New York. is an online shoe and clothing retailer based in Las Vegas, Nevada that was acquired by Amazon (NASDAQ:AMZN) in 2009. Zappos just introduced a “Goods for Good” platform that filters eco conscious brands. The platform will allow consumers to shop over 150 eco and socially-responsible brands while supporting their favourite cause. So, everyone in retail is turning towards creating or better said, curating, new ways to enhance the buying experience for consumers.

There’s also Road Runner Sports, America’s largest specialized fitness shoe retailer, who launched Revolutionary 3D Fit Drone technology for the perfect shoe fit back in February. Surely, it is one of the biggest breakthroughs in the shoe fitting industry in the recent years. And this innovation will surely enhance customers’ running experience as the company has already fitted more than 2.8 million runners and walkers over the past decade. Therefore, the race for ‘the most innovative and enriching buying experience’ has begun!


Consumers are shifting towards buying directly from manufacturers such as Nike who for this reason decided to abandon Amazon, which is actually good news for Foot Locker. Company’s management is pleased with the company’s performance in the quarter, as results reflect the success of the strategic focus on deepening connections with customers and strengthening relationships with vendors so they don’t have any reason to go to the customers directly. Improved results definitely reflect efforts to drive the top line, strengthen operational execution which is reflected in the improved gross margin, SG&A, and inventory productivity. So besides kicking off its 8th Annual Week of Greatness Campaign, Foot Locker also managed to kick off some of those headwinds that caused its stock to tumble more than 20% this year.

This article is contributed by It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

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Recovering from COVID-19 – Tech Companies Know How!



HP News

When the year started, no one saw this COVID-19 chaos coming so no one had the slightest clue that markets and stocks would go the way they did. Especially since 2020 started with many promising movements in the tech department! Alphabet Inc. (NASDAQ:GOOG) had a nice run until February 19th, starting the year at price $1,337, and growing to more than $1,526. And then it started going down, all the way to $1,098 as of April 3rd. Similar goes for, Inc. (NASDAQ:AMZN). The stock started the year valued at around $1,848, and it pushed to $2,170, again until February 19th.

Then the COVID-19 roller coaster began!

Amazon’s stock finished at $1,906 as of April 3rd. But this is not bad at all! Its main cloud competitor, Microsoft Corporation (NASDAQ:MSFT)’s stock started the year at a price around $158, and pushed to $188 per share during the period from February 10th to February 19th. And as of March 31st, the price per share settled at around $158, almost the same as the opening price in January. This is also not bad considering the rest of the economy. Even more, Microsoft’s plan to pay out a dividend of 51 cents per share looks doable. This decision has been confirmed by the board of directors as the dividend should be paid out in June 2020. And this will only push Microsoft’s stock higher.

Microsoft cloud solutions vs other solutions

Microsoft’s CEO, Satya Nadella was appointed to the job in 2014. Considering his previous position was being the executive VP of Microsoft’s cloud and enterprise group, his appointment was a clear commitment to Microsoft’s strategy of launching further into the cloud. Besides the cloud, Microsoft’s strength lies within cloud applications, and this is proven to be helping Microsoft’s stock right now. But to be clear, this ”cloud-based” strategy requested much more capital spending, $1 billion every quarter to be exact. And total capital spending for the whole company was just under $2 billion in 2010. So, this was a big decision to say the least!

By doing other software companies’ online business, Microsoft managed to step in Amazon’s backyard. And if we look at Amazon’s stock right now, even during this period, it is clear this was a good path to choose.

Communication and collaboration platforms

Microsoft’s collaboration platform, Teams, is being heavily used during the COVID-19-induced “home office environment”. The increase in use was so high, that Microsoft had to constantly work on expanding the capacity of the platform. On the other hand, everyone started talking about conference solutions from Zoom Video Communications, Inc. (NASDAQ:ZM). Even with some security issues, Zoom has become the choice of many for doing business at home, offering a free basic plan with up to 40 minutes in group “calls”. Many even say that Zoom has managed to outperform Microsoft Teams.

Tech stock seems to be recovering

No matter the current stock price, most tech stocks have found a way to recover from coronavirus. All companies that are supporting millions of people so that they can work from their homes are helping both the economy to stay alive but also themselves by keeping their core business strong. Cloud solutions and e-commerce are the essential players in this scenario. As for other tech companies that did not manage to switch to offering cloud and e-commerce solutions, they are less likely to recover at the same pace as these companies did. And they did quite a good job as some might even exit this unforeseen health crisis even better-off than they were  before it all started.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: Questions about this release can be send to

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Is Shale About to Fail Due to Oil Wars?



Canadian Oil

During March, we had the opportunity to witness an interesting development when it comes to the statements by President Trump. Initially, when oil prices plunged at the beginning of March, the president stated that this presents good news for the consumers. Moreover, Trump stated that low oil prices are due to the biggest tax cuts in US history. However, last Wednesday, everybody started getting nervous as these “incredible” prices started aiming for the 17-year lowest oil price record. These are quite the bad news for the already turbulent industry.

For corporations, things are going South

Whiting Petroleum Corporation (NYSE: WLL), a big shale oil producer in North Dakota, has filed for bankruptcy protection. The oil Industry has taken the greatest hit possibly since the Great Depression, hammered by both COVID-19 pandemic and the price war between Saudi Arabia and Russia which resulted in their pump-at-will policy.

The United States Between Oil Gambit of Russia and Saudi Arabia – Package of Salvation

Meanwhile, President Trump met oil executives on Friday, including U.S. oil giants, such as ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), Occidental Petroleum (NYSE: OXY) and Continental Resources (NYSE: CLR). The subject of the meeting was to grant access to government programs, aimed to help the companies deal with the hit of the coronavirus pandemic. The U.S. oil industry is highly diversified, with more than 6,000 oil companies, from small oil drillers from North Dakota to Texas, to oil giants such as ExxonMobil and Chevron. Mr. Sommers, CEO of the American Petroleum Institute, said that since oil companies are operating in a market economy, no restrictions on production should be imposed. However, he greeted the opportunity for small oil companies to get access to Small Business Administration loans, while larger companies should be entitled to the gigantic $2 trillion package that was enacted last week. These measures should ensure liquidity that the oil sector needs  to survive the epic plunge in demand.

Trump’s Attempt at Shuttle Diplomacy

Alongside with domestic oil producers’ meetings, President Trump posted on Twitter to be acting as an intermediary by speaking to President of Russia, Vladimir V. Putin and the Saudi crown prince Mohammed bin Salman, saying they have agreed on a compromise. Trump has called for oil production cuts in an effort to bolster already shaken oil prices. Oil prices surged 20% that day from $21.92 to $26.42 per barrel and currently are holding at $29 per barrel, which presents an almost 50% increase compared to last week. But the problem is that Dmitri S. Peskov, President Putin’s spokesman has denied any contact between President Putin and Saudi crown prince took place as well as any sort of agreement. So we will need to wait and see what is the actual deal and in which way will it be put into practice.

So, is the shale industry about to fail?

On the other hand, the shale oil industry is even more vulnerable due to the high production costs and the United States being the largest shale oil producer. The fact is that oil price below $50 per barrel is dangerous for the shale oil industry, and at this moment, there are no indications that things will get better anytime soon.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: Questions about this release can be send to

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Retail – It’s Really Bad, but For Some Less Than Others



Foot Locker News

The Financial Times has reported that closures due to the coronavirus outbreak have been nothing less than the last drop for this already troubled industry. On top of which, the recently passed $2.2 trillion stimulus bill does not look encouraging for retail that was already feeling the crunch before all this chaos, just ask Macy’s Inc (NYSE:M) or Nordstrom Inc (NYSE:JWN) whose shares even lost 59.6% in only a month after its latest earnings report.

Is there any hope for a rebound?

A large part of the retail industry that is not involved in selling groceries, toilet paper or disinfectant has very little cash coming in. Labor costs are usually a retailer’s biggest expense and instant measures will relate to this business segment. Many jobs will be lost as Macy’s already announced that the cuts would affect most of their 125,000 workers, while Gap is planning to furlough nearly 80,000 store employees. Similar actions are expected by other name-brand chains whose products are considered nonessential. In addition, not only the sales personnel will be impacted but also the back-office forces. Nordstrom announced that they would furlough a portion of corporate employees on April 5 for six weeks. Cutting mainly part-time, nonunion workers may be the easiest cost-savings move for retailers. And by granting this sort of absence to employees instead of laying them off, they could potentially speed up their return to normal once things restart. So there is at least a small glimpse of hope for a rebound.


Target (NYSE: TGT) is the neighbourhood superstore for many in the U.S., and that’s where many are turning to get their essential goods during the COVID-19 shut-down. But while sales of necessities are soaring, sales of higher margin goods are slowing down, which is putting significant pressure on the earnings potential. Turnover growth of 20% on a year-over-year basis in March forced the company to hire additional employees in order to ensure a high level of service to the customers. But a growth of 50%  in essential products also means it is also becoming more challenging to sustain a high level of service. So, despite a short-term expected decrease in margins, higher turnover and commitment to customers should be of great advantage in the long-run because they will result in a loyal customer base.

Amazon Inc (NASDAQ:AMZN) is another company which needs to hire additional employees in order to satisfy a surging demand. In March, Amazon announced it plans to hire 100,000 warehouse and delivery workers. Having in mind that a lot of workers are not interested to put themselves at risk by being in close contact with others, Amazon decided to raise wages by 2 dollars per hour until the end of April. Still, there are a lot of workers who are complaining about the healthy precautions taken and believe the company isn’t doing enough to protect its employees. Although the company assures that all necessary measures have been undertaken, employee relations have never been one of Amazon’s strengths. It seems that the mistreatment of employees is only catching up with the e-commerce giant amid the COVID-19 drama.

Nike is optimistic

According to the latest earning reports, Nike Inc.’s (NYSE:NKE) revenues increased to $10.1 billion in the third quarter, which is 5 percent on a reported basis and 7 percent on a currency-neutral basis, driven by 13 percent currency-neutral growth in NIKE Direct with digital sales growth of 36 percent. Digital sales in Greater China increased more than 30 percent while retail sales were impacted by temporary store closures related to COVID-19. Currently, nearly 80 percent of stores have reopened their doors in Greater China with recorded revenue growth in double digits. On the other hand, since March 16th, all Nike-owned stores outside of China, Japan and Korea were closed also to help curb the spread of COVID-19 but Nike is optimistic for a reason as its latest digital sales have almost reached holiday levels and digital does represent 20 percent of its overall business.

Is the positive trend sustainable? 2021 at least has a shot at being brighter…

It is obvious that this crisis will be a major catalyst for the retail industry which is already in trouble due to the development of e-commerce and change in consumer behaviour. Another huge problem relates to landlords who are not willing to support retailers as they insist on paying rents because they also have obligations. This is only an additional dumbbell for the already troubled industry to carry. Consequently, many retailers might not be able to survive this unforeseen health crisis. But there are some who are managing to do well despite it all. However, the question is whether this positive trend can be sustained since traffic at Walmart In (NYSE:WMT), Costco Wholesale Corporation (NASDAQ:COST) and even Target has fallen for the first time since the outbreak as a consequence of stockpiling so not all is that bright. But there is always the silver lining. As economic activity resumes and people go back to shopping, traveling and dining out, 2021 could have very easy EPS and other performance results. But this will only be the case if we don’t see another round of economic shutdowns as Asian nations now fear the second coronavirus wave while Europe and the US are still struggling with the first wave.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact:

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