Foot Locker Is Zigging When Other Retailers Are Zagging

Deutsche Bank's Paul Trussell reaffirmed his Buy position on Foot Locker, Inc. FL, but decreased the price target from $80 to $79.

Trussell said Foot Locker "saw an acceleration in top-line trends in Q1 at the exact time the rest of retail saw meaningful deceleration." The analyst noted strong running, athletic and basketball causal category trends that fit well with Foot Locker's business model.

Related Link: Foot Locker Is Still The Best House On The Retail Block, Could Be Amazon-Immune

The Deutsche Bank analyst claimed, however, that growth rates will likely be "below annual guidance… due to headquarter relocation expenses and slight FX headwinds."

To reflect positive industry trends and extended moving costs, Deutsche Bank increased its FY2016 revenue projections from $7,767 million to $7,795 million and lowered their EPS target from 4.82 to 4.81.