Foot Locker announced Thursday it will cease its efforts to purchase footwear retailer Genesco Inc. The decision is based on Genesco's rejection of Foot Locker's sweetened buyout offer of $51 per share. Genesco, the operator of the Journeys, Johnston & Murphy, Hatworld and Lids chains, has elected to pursue other strategic alternatives. Foot Locker shares closed up 4% at $21.94, while Genesco shares dipped 1.8% to $51.36 before recovering to close at $52.35.
Commentary: Foot Locker Posts Sharp Drop in Q1 Net Income • Jim Cramer's Wall Street Confidential Picks, May 21
Stocks/ETFs to watch: Foot Locker, Inc. (NYSE:FL), Genesco Inc. (NYSE:GCO). Competitors: Finish Line Inc. (NASDAQ:FINL), Stride Rite Corp. (SRR). ETFs: Retail HOLDRS ETF (NYSEARCA:RTH), SPDR S&P Retail (NYSEARCA:XRT), PowerShares Dynamic Retail (NYSEARCA:PMR)
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