While Nike and Under Armour each have some stores of their own, they also rely on broader sports retailers to shoulder the load. One of the biggest ‘big uglies’ moving the ball forward? Foot Locker (NYSE:FL), and its 3,300-plus stores.
FL can outfit you from head to toe through its various store outlets, including Kids Foot Locker, Footaction and Champs outlets. The company carries NFL and NCAA gear across a wide spectrum of teams, and its stores are plastered with apparel from across the company.
In addition to the brick-and-mortar locations, consumers can order via FL’s biggest online segment, Eastbay, which caters to every sport and consumer level, including high school athletics. FL sank $159 million into capital expenditures in 2011 to bolster facilities and online efforts, and its direct-to-customer segment (which is mostly Eastbay) now accounts for $500 million in revenues and $45 million in profits.
Foot Locker also is focused on the investor. While dividend growth hasn’t been rampant, it has been there — FL hiked its dividend 9% this year on top of a 10% increase the year before, and now offers 18 cents quarterly for a 2.1% yield. Not too shabby for a manageable 15 P/E and anticipated earnings growth in the double digits.
FL just came through with a strong second quarter, boosting share prices to 45% year-to-date gains. Next up: A whack at back-to-school and football season.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities — but he loves his Under Armour Ravens shirt.