Consumer Goods | United States
WSD Target Price
Annualized Return Since Publication
Target Equity Value (Δ)
Source: Bloomberg end of day market data; not adjusted for dividends (December 8, 2016).
Returns assume a long investment position on the date that WSD Capital Management published its thesis, and an exit on the date that the WSD Target Price is realized.
Returns do not reflect any fees, expenses or taxes.
The returns are hypothetical and do not reflect the actual results of WSD Capital Management’s investment activities, nor is it necessarily indicative of future results of WSD Capital Management’s investment activities.
Foot Locker (“Foot Locker”) is a leading specialty athletic retailer that operates over 1,835 stores in 23 countries in North America, Europe, Australia, and New Zealand.
WSD Capital Management announced its investment in Foot Locker on August 19, 2016. We were attracted to what we believed was an undervalued company that generates strong free cash flow with an investment grade balance sheet that offers exceptional optionality. Foot Locker’s management has been enhancing its operations by implementing new initiatives to increase operating margins, same store sales, and returns on invested capital through improvements of stores standards and enhancements in product and cost management.
During WSD Capital Management’s investment in Foot Locker, the company posted a positive earnings surprise for the third straight quarter through cost containment efforts and strategic initiatives that enhanced year-over-year growth in both the top line and bottom line.
We exited our investment in Foot Locker after the company’s common stock realized its target price in December 2016.