Foot Locker Inc (FL): DICK’S Buy Is Due To Nike, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Revealed How Canada Has Harmed The US. Foot Locker Inc (NYSE:FL) is one of the stocks Jim Cramer recently discussed.

Foot Locker Inc (NYSE:FL) is an American footwear and apparel retailer. Its shares have gained 16.8% year-to-date despite the broader sluggishness in the retail industry. The stock is up primarily due to a massive 85% jump in May. Foot Locker Inc (NYSE:FL)’s shares soared after DICK’S Sporting Goods announced that it would acquire the firm. As a result, the stock’s movement in the future should revolve primarily around this deal. Cramer discussed Foot Locker Inc (NYSE:FL) in the context of its deal with Nike and the deal:

“. . .I think that the Footlocker buy by Dick’s is an acknowledgement that Footlocker’s getting the right Nikes.”

Here are Cramer’s previous thoughts about Foot Locker Inc (NYSE:FL) in April:

“Foot Locker reported a terrific quarter, much better than expected, as CEO Mary Dillon’s turnaround plan takes hold, aided by Nike’s attempts to repair its relationship with actual shoe stores. Nobody cared too much under the previous CEO. Nike didn’t really care for Foot Locker; they wanted more of an emphasis on direct-to-consumer. It was stupid, and that didn’t work out. But Elliott Hill, the new CEO, is working very closely with Foot Locker. It’s a new Foot Locker. But people were way too gloomy to even notice the same-store sales improvement this morning. That doesn’t make sense. I think it’s a genuine winner. I can go on, and yes, despite all these positives, the stock only gained 89 cents because things are being valued incorrectly.”

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Disclosure: None. This article is originally published at Insider Monkey.