Foot Locker, Inc. (FL) & Hibbett Sports, Inc. (HIBB): A Trade of Two Sporting Goods Manufacturers

Foot Locker, Inc. (NYSE:FL) & Hibbett Sports, Inc. (NASDAQ:HIBB) both reported their second quarter earnings today. While Foot Locker, Inc. (NYSE:FL)  saw a  rise in its shares, Hibbett Sports, Inc. (NASDAQ:HIBB)’s stock went soft. CNBC’s Dominic Chu reported on the earnings of both the companies and ‘FMHR’ Traders Jon Najarian and Stephanie Link described their views on them, on CNBC recently.

” We got a tale of two companies,  the stock that’s on run first of all today that’s Foot Locker, Inc. (NYSE:FL) […] It set a record price at one point earlier today, profits and sales for the company came in better than expected and so did sales at stores open at least an year, those comp score sales everyone likes to look at in retail. They were helped along by better running shoe sales. So, Foot Locker, Inc. (NYSE:FL), nice little move higher.  […],” Chu said.

Chu then went on to the results of Hibbett Sports, Inc. (NASDAQ:HIBB), which is a small-cap company. Chu reported that Hibbett Sports, Inc. (NASDAQ:HIBB)’s earnings came slightly better than estimates, but the company’s sales fell, its traffic was down and the profit margins got reduced due to discounting. Chu feels that when it comes to retail companies, traffic and profit margins are two major concern for investors and that’s why Hibbett Sports, Inc. (NASDAQ:HIBB)’s stock is trading down. Najarian likes sporting good manufacturers and feels that  Foot Locker, Inc. (NYSE:FL) is a good bet among such companies.

“Just going back to  Hibbett Sports, Inc. (NASDAQ:HIBB), that company already pre-announced negatively. So, they just came in line basically. They don’t have a e-commerce strategy, so, they are really feeling the brunt of just being kind of special situation around a holiday kind of thing. I think Foot Locker, Inc. (NYSE:FL) really speaks to the very high quality products that they have and the fact that they are going after basketball,” Link said.

Disclosure: None