When it came to footwear, Foot Locker used to be best of breed. Even when the shopping at malls began to decline, Foot Locker still rallied 15 percent in 2015. But ever since 2016 began, the stock has dramatically lagged the S&P 500, leading Jim Cramer to wonder what the heck went wrong.
Foot Locker's stock was hit hard when the company reported suboptimal results in May. It has traded sideways ever since.
"It is worth noting that even if some investors didn't see these disappointing results coming, the stock market certainly did," the "Mad Money" host said.
The first sign that there was a problem was when the company reported the quarter at the end of February. While management delivered a top and bottom line beat, the stock fell more than 4 percent on the news that management had seen low-single digit same-store sales growth, which wasn't included in the printed numbers.
Sure enough, when the company reported, it delivered only in-line earnings and weaker revenue.