We're adding to our position in this sportswear retailer on a pullback

Published Mon, Apr 24 202312:01 PM EDT

We're buying 350 shares of Foot Locker (FL), at roughly $40.43 apiece. Following Monday's trade, Jim Cramer's Charitable Trust will own 700 shares of FL, increasing its weighting in the portfolio to 1.06% from 0.53%. We've had our eye on sneaker-and-athletic-wear retailer Footlocker for about a week now. And with shares down close to 3% over the past few trading sessions, the price is now right to add to our position. There hasn't been a lot of news around Foot Locker dating back to our initial buy in March , with the exception of one key data point. In late March, CEO Mary Dillon disclosed she purchased roughly $500,000 worth of Foot Locker stock , at $39.74 a share — bolstering our confidence in the company's turnaround strategy. When an insider buys a stock, it's typically for one reason: To make money on the belief the price is going higher. Dillon joined Foot Locker last year after a very successful run as CEO of Ulta Beauty (ULTA). Last month, Dillon and her team unveiled Foot Locker's new "Lace Up" strategy. The plan includes leveraging partnerships with fast growing brands like On Running, Hoka, New Balance, Crox, ASICS and other, in an effort to boost sales and become less reliant on Nike (NKE). Another key aspect of the multiyear plan is a decision to exit about 400 underperforming stores over the next few years, allowing Footlocker to reallocate resources to higher-performing locations. Dillon is also winding down underperforming brands, launching new store concepts, accelerating investment in technology and building out a more comprehensive loyalty program and omnichannel experience. Foot Lock's "Lace Up" plan should put the retailer on a path toward sustainable, profitable growth after a reset year. While the turnaround plays out, we'll be well-compensated by the stock's near 4% dividend yield and cushioned by the cheap 10-times multiple on 2024 earnings estimates. (Jim Cramer's Charitable Trust is long FL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Audrey Topkin, 11, selects sneakers with her mother, Robyn, at a Dick's Sporting Goods store as pre-Thanksgiving and Christmas holiday shopping accelerates at the King of Prussia Mall in King of Prussia, Pennsylvania, November 22, 2019.

Mark Makela | Reuters