Was Jim Cramer Right About These 16 Stocks?

15. Foot Locker Inc. (NYSE:FL)

Number of Hedge Fund Investors: 35

Cramer admitted that he made a mistake buying Foot Locker (NYSE:FL) believing CEO Mary Dillon could turn it around at the time:

“Sometimes the company’s in such bad shape that there’s almost no coming back from it, even if they bring in a tremendously talented management team. […] I still believe she’s a great CEO. However, I always tell you that you never want to own the best house in a bad neighbourhood, and Foot Locker wasn’t even the best house in a bad neighbourhood—it was a bad house in a horrible neighbourhood. […] In retrospect, that was a colossal error—a disastrous mix of ignorance and arrogance on my part. “

It appears that Cramer was right to be worried back then, as the stock dropped by 23% ever since.

On March 5th 2025, Cramer re-addressed Foot Locker, saying:

“Of course, these days we see all sorts of wholesale revisions and no one knows how to value them either. This morning Foot Locker reported a terrific quarter, much better than expected. As CEO Mary Dillon’s turnaround plan takes hold, aided by Nike’s attempts to repair its relationship with actual shoe stores, nobody cared, too much ennui. Under the previous CEO, Nike, Nike didn’t really care for Foot Locker.

They wanted more of an emphasis on direct-to-consumer. It was stupid. That didn’t work out but Elliot Hill, the new CEO, is working very closely with Foot Locker, so is On Holding, so is Deckers, the owner of UGG and, and HOKA, so is Adidas… but people were way too gloomy to even note the same-store sales improvement this morning. That’s nonsense. I think it’s a genuine winner. I can go on and yes, despite all these positives, the stock only gained 89 cents because things are being valued incorrectly.”