Investment company Daniel Křetínský and Patrik Tkáč Vesa Equity Investments may be testing an exit from its US investment in the Foot Locker chain. In the last one and a half months, it has gradually sold its shares three times for 12 million dollars (261 million crowns). That’s according to data from the US Securities and Exchange Commission (SEC).
“We will not comment on our steps,” Daniel Častvaj, a spokesman for Křetínský, limited himself.
However, domestic investors are still the largest shareholder in the American sports shoe retailer Foot Locker. It owns 12.8 million shares, ie a 12.3 percent stake, which is currently worth $ 694.5 million (15.1 billion crowns).
The investment in Foot Locker significantly improved Křetínský’s and Tkáč’s. Vesa Equity Investment started buying last year after the March declines on world stock exchanges, when the shares of the American chain fell below twenty dollars. In the second half of May last year, it already held a 6% stake. At the end of November, it was already 10.3 percent and in January it owned a 12.5 percent share.
According to a number of brokerage companies, the value of Foot Locker’s shares may rise even higher. For example, the Telsey Advisory Group recently raised its target price to $ 60. Cowen Investment Bank then estimates it can reach up to $ 72.
Foot Locker last announced its results on May 20. The sports shoe retailer reported earnings per share of $ 1.96 for the quarter, significantly exceeding Zacks’ consensus estimate of $ 1.06.
The company’s revenue for the quarter was $ 2.15 billion, while the consensus estimate was $ 1.86 billion. Foot Locker’s net margin was 7.45 percent and its return on equity was 21.23 percent. The company will pay a quarterly dividend of $ 0.20 at the end of July.
Vesa Equity Investment is an investment company owned by Daniel Křetínský (53 percent) and Patrik Tkáč (47 percent). Patrik Tkáč is a co-founder and co-owner of J&T Group companies. Daniel Křetínský is the dominant shareholder, chairman and executive director of Energetický a průmyslový holding (EPH), an international group operating in the field of energy and infrastructure based in Prague.