Foot Locker downgraded to Neutral from Buy at BTIG

BTIG downgraded Foot Locker (FL) to Neutral from Buy without a price target. The shares have rebounded over 30% off the August lows post the Q2 report, despite BTIG’s expectation that the upcoming Q3 report on November 29 will point to unchanged fundamentals, the analyst tells investors in a research note. As such, the firm is taking this opportunity to step to the sidelines. While it continues to believe in the “significant low-hanging fruit” at Foot Locker and the company’s potential as CEO Mary Dillon implements her playbook, it believes the turn is likely to be more gradual than anticipated given ongoing macro headwind, the reduction in Nike (NKE) allocations and growing competition from other retailers.