Consumer Goods | United States
Equity Value (Δ)
Source: Bloomberg end of day market data; not adjusted for dividends (December 8, 2016).
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 in December 2016.