These Two Apparel Retailers Will Make Your Portfolio Fit: Analysts
Ever since Foot Locker changed its management several years ago, "I think the focus has been definitely on improving operational execution...from inventory management to product margins, particularly in apparel," said Christopher Svezia, an analyst at Susquehanna Financial Group.
"You obviously have a very favorable product cycle, particularly in footware and technical apparel, that I think continues to benefit Foot Locker," he added.
After closing 14 percent of their stores over the past six years "a lot of issues they've had in the past are for the most part, in this environment, certainly behind them."
Stacey Widlitz, an independent analyst and CNBC contributor, said retailer Lululemon , maker of clothes for yoga, running and working out, has beat analyst expectations by 20 percent for the past six quarters with average same-store sales for the last six months up more than 25 percent.
"The numbers will continue to go up," she said. "This year you really have to look at retailers that have differentiated product in this kind of environment. Lulu is certainly one of them, whether that's driven through technology or expanding into new categories like cycling and going deeper into the men's category."
She doesn't think the high stock price — it has more than doubled over the past 12 months — is tied to rumors Lululemon could be a takeover target, although she wouldn't rule it out.
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Neither Christopher Svezia nor his company own shares but Susquehanna Financial makes a market in Foot Locker. Disclosure information was not available for Stacey Widlitz.