Sears Holdings Corp (SHLD) is a Sinking Ship

Foot Locker, Inc. (NYSE:FL) is following Nike’s lead

New management at Foot Locker is making various improvements to the firm, including the number of international stores. However, this is just the beginning of efforts that we will see at Foot Locker. Management has also cited improvements in store productivity, better apparel and technological enhancements. Analysts see the share price reaching nearly $45, and it is currently priced at around $36 per share. However, Morningstar says there is a lot of uncertainty about the profitability of the company. I see the historically stable performance as an indication that Foot Locker will continue to dominate, and international expansion will fuel much of those gains.

Goodbye to Sears Holdings Corp (NASDAQ:SHLD)?

Sears Holdings Corp (NASDAQ:SHLD) could very well turn operations around. After all, the firm is more than a century old, and this corporate titan won’t die with age. However, the company is going through major restructuring, and improved efficiency at its stores. This will take several years to sort out, and the $100 million lawsuit only adds salt to shareholders’ wounds. Investors should jump this sinking ship and hop onto the more attractive and luxurious safety offered by Nike and Foot Locker.

The article Sears is a Sinking Ship originally appeared on Fool.com is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Nike. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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