Shares of Foot Locker Inc. rose 19.8% in Friday trading, boosted by the sneaker retailer’s second-quarter results and CEO transition announcement.
“Dillon brings an opportunity for positive change,” wrote B. of A. Securities analyst Lorraine Hutchinson, in a note. “This is a thesis changing move in our view given Dillon’s reputation in the industry.”
A highly respected consumer executive, Dillon was CEO of Ulta Beauty for eight years, where she engineered a best-in-class loyalty program, and saw revenue increase at a CAGR of 16%, according to Hutchinson. The company’s stock price also tripled during her tenure, the analyst said.
B. of A. Securities upgraded Foot Locker to neutral, noting that the company’s risk/reward profile is now more balanced.
Foot Locker shares have fallen 12.2% this year, compared with the S&P 500 index’s
decline of 11.2%.
Of 22 analysts surveyed by FactSet, two have a buy rating, 17 have a hold rating, and three have a sell rating for Foot Locker.