Avoid the Short-Term Risk Embedded in This Shoe Retailer

After a multi-decade sales record in 2021, athletic shoe and apparel retailer Foot Locker (NYSE: FL) has grown its inventory dramatically. The company may now have challenges selling that inventory in a slowing economy.

The company faces one of two risks in the coming quarters -- and potentially more. Here's what it all means for investors.

COVID-related stimulus, low interest rates, and an accommodating stance by the U.S. Federal Reserve had the economy firing on all cylinders in 2021. Red-hot consumer demand helped Foot Locker finish the year with $8.96 billion in sales -- its highest level in over 20 years.

Source Fool.com