The Lace Up strategy at Foot Locker is showing some green shoots, but will it be enough? Retail turnarounds are notoriously difficult at the best of times, with Foot Locker struggling with the additional nuance of its relationship with Nike. The market has gotten excited about the turnaround, which also brings valuation risk into the analysis.
Under Armour is a bit like ordering Nike on Wish. As the joke goes, you aren’t quite getting what you thought you paid for. The business operates in the apparel market, yet it has struggled to gain proper traction with consumers. The leadership of the group is now in disarray, after the sudden departure of the CEO and the return of the founder to that role. Is Under Armour truly broken, or is this an interesting speculative play?
In this episode of Magic Markets, we dug in the back of our cupboards for the shoes we are too embarrassed to wear. Perhaps we just aren’t fashionable enough, as there are many celebrities wearing Birkenstocks. As for Crocs, there are few who would put those on a pedestal for beautiful design. Moe covered Crocs in this show, starting with a recap of some of the points we covered when issuing our Magic Markets Premium report on Crocs some time ago. Ghost took on the responsibility of Birkenstock, which executed its IPO just a few months ago. Of the two ugly shoe contenders, which one is a buy? And does Birkenstock make a decent case for itself to be covered in Magic Markets Premium at some stage? Listen to this podcast to find out.
Foot Locker is a perfect example of a business model that has been cracked wide open by a shift in the value chain. After previous management allowed the company to become a glorified Nike store, the new team is being forced to cut back on Nike because of that company's direct-to-consumer strategy. This creates plenty of uncertainty and a need for a turnaround strategy, which is why the dividend has been suspended.
Use the podcast player below to listen to our discussion on Crocs and its Q3'22 result, which accompanies the detailed write-up below: (Date of report: 15 December 2022) You might not like Crocs, but the group sold over 30 million shoes this quarter. It was a record quarter for revenue and full year guidance has been raised. Clearly, there are enough people out there who like the shoes to make this a potent business. Sitting at the centre of trends like casualisation and direct-to-consumer, the immense share price performance over 5 years is far less polarising than the shoes. Can the [...]
Use the podcast player below to listen to our discussion on Crocs and its Q3'22 result, which accompanies the detailed write-up below: (Date of report: 15 December 2022) You might not like Crocs, but the group sold over 30 million shoes this quarter. It was a record quarter for revenue and full year guidance has been raised. Clearly, there are enough people out there who like the shoes to make this a potent business. Sitting at the centre of trends like casualisation and direct-to-consumer, the immense share price performance over 5 years is far less polarising than the shoes. Can the [...]
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