Opinions David Driscoll
Foot LockerFLBUYMay 19, 2017
David DriscollStock price when the opinion was issued
As of Sep 05, 2025. Market Open.
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In late 2022, he believed too much in a CEO who couldn't turn around an awful company. The CEO had a great track record and warned the turnaround could take a long time. So, he was patient and bought a small position. A big mistake. His mistake. Hubris. A turnaround can take a very long time.
She had great faith in the new CEO whom he interviewed last March and bought a small position. The CEO came with a strong track record. He knew that turning around FL was a giant job, but it was impossible. He blew this call. FL was a flailing mall-based retailer. They reported ugly quarters in May and August, the latter reporting that sales sank 10% YOY and earnings -96% YOY. Lots of excess inventory. Awful. FL also halted their dividend, which is why many bought this stock. He was blinded by the CEO's great track record (and still believes in her), but the company had no chance for a turnaround. He should have known better.
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This has free cash flow growth. Against their competition, they have actually been doing quite well. You’re getting a 10-year growth rate and CapX at 50%, cash from operations of 110%, and dividend growth of 184% over the last 10 years. The free cash flow has grown at about a 3rd over that time frame. A brick-and-mortar company that knows what they are doing.