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Athletic Retailers Aren't Sweating NBA Lockout

The first two weeks of the National Basketball League regular season are cancelled over the ongoing salary cap and revenue sharing dispute, and investors are looking at potential impact on athletic retailers like Foot Locker Inc. and The Finish Line Inc. For good reason: between July 1998 and January 1999, when the last lockout took place, retailers saw weaker sales.

But Camilo Lyon, an analyst with Canaccord Genuity, says comparisons between the two are overblown. “The athletic retail environment that coincided with the 1998-99 lockout was vastly different that today’s. We believe the overhang on the retailers with exposure to the basketball category is unwarranted,” he said in a note.

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