Before the opening bell on Friday, Foot Locker (FL) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside FL's Results
FL reported earnings of $146 million, or $1.01 per share, up from $121 million, or 81 cents per share, last year. Excluding special items, earnings were $1.00, above analysts’ view of 91 cents.
For 2014, net income was $520 million, or $3.56 per share, from $429 million, or $2.85 per share.
Revenue increased 6.7% to $1.91 billion from $1.79 billion last year. Analysts expected to see revenue of $1.87 billion.
For the year, sales rose 9.9% to $7.151 billion.
Sales Are Surging, But There Are Concerns
Foot Locker had a record year for sales in 2014, a well as a 6.7% increase in fourth quarter sales. The holiday season was certainly kind to the athletic apparel retailer, but there are a few concerns going forward.
Although profits are growing, FL has seen increased competition from companies like Nike (NKE), as well as department stores like Macy’s (M). Sales growth is expected to remain in the mid-single digit range, but the strengthening dollar will continue to be a headwind.
Mutual Funds to Watch
For investors seeking exposure to FL, there are several mutual funds that have the company as a holding. Below are three mutual funds that currently own the largest stakes in FL.
|OAKBX||Oakmark Equity & Income I||3.41%|
|VTSMX||Vanguard Total Stock Market||2.57%|
|VEXMX||Vanguard Extended Market Idx||1.73%|
The Bottom Line
The funds above allow investors to gain exposure to FL, while still remaining diversified. Investors interested in HRB may also be interested in Nike (NKE) or Under Armour (UA).
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