Piper Sandler analyst Abbie Zvejnieks initiated coverage on Foot Locker Inc. (NYSE: FL) with a Neutral rating and a price target of $19.
The analyst writes that forecasting and inventory management have been challenging for Foot Locker.
As FL's lower-income consumer has pulled back on discretionary spending, inventory has increased, which could lead to the continued use of promotions to support the business.
47% of FL's customers are considered lower income, and this customer is feeling pressure from inflation and the absence of stimulus, the analyst adds.