Foot Locker's turnaround plans send stock rising

Shares of Foot Locker (FL) are rising after the company laid out its turnaround plan to attract consumers back.

Yahoo Finance's Brooke DiPalma breaks down the footwear giant's initiatives to provide value to customers struggling with tight budgets amid high inflation.

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Video transcript

Absolutely, Brooke, you're also watching Foot Locker here in the, in the business of sneakers and the business of keeping the feet comfortable out there.

So how did its Q one results compare to previous quarters?

So their turnaround plan is what to keep a close eye on here, Brad.

It's called the Lease Up plan pretty, pretty unique.

But, but really what we saw there was that discretionary income is not going towards sneakers.

And so Foot Locker really doubling down trying to understand how they're going to get those uh consumers who are pinched with prolonged inflation, reduced savings and higher interest rates back in the door to use that discretionary income.

And they seem as you could see shares up roughly 23% investors seem to be liking this, uh, new plan and consumers seem to be liking it too.

Their digital business.

They're expected to launch a loyalty program called FLX Rewards that's launching Q two.

They, in addition to that are introducing this new store experience, introduce a concept in Wayne, New Jersey.

They're seeing higher foot traffic there as well as higher basket sizes.

And also they're really focusing on to returning growth with Nike.

Nike makes up about 60% of their portfolio and they're hoping with working with Nike on their multi year growth plan, they'll be able to use innovation that Nike is just coming out with ahead of the Paris Olympics.

Really drive customers back in.

That's going to be a huge element for the business here, Paris Olympics, a major event.

Um Of course, that is gonna potentially be the next driver for a lot of these athletic apparel and retail companies here.

Brooke.

Thanks so much for breaking this down.