Foot Locker, Inc. (NYSE: FL)
Foot Locker shares rallied in after-hours trade on Tuesday after the company delivered earnings and sales that were above expectations of Wall Street analysts.
The beat is a positive sign to investors seeking high growth out of the apparel retailer.
Wall Street expected Foot Locker to report impressive results considering that the athletic apparel market is still red hot. Shares rose more than 12% in the extended trading session following the good numbers. The stock closed the regular trading with a loss of 5.57% amid broader weakness in markets.
FL Earnings & Outlook
The New York-based company posted fiscal third quarter net income of $130 million, or $1.14 per share, up from $102 million, or $0.81 per share, in the comparable period a year ago. Earnings, adjusted for one-time items, were $0.95 per share, surpassing analyst expectations for adjusted earnings of $0.92 per share, according to Refinitiv figures.
The company reported revenue of $1.86 billion during the period, down from $1.87 last year, but ahead of analyst forecasts of $1.85 billion. Sales at Foot Locker’s stores open for at least 12 months grew 2.9% during the quarter, beating Refinitiv expectations for growth of 1.6%.
Foot Locker will reveal details regarding its guidance in a conference call late Tuesday. Nonetheless, analysts are expecting the company to post adjusted earnings of $1.35 per share on revenue of $2.14 billion for its fiscal fourth quarter.
Foot Locker CEO Comments
“Our accelerating comparable sales and improving bottom line reflect the strategic partnerships with our vendors, as well as our efforts to inspire and empower youth culture and create deeper connections with local communities,” said Richard Johnson, Chairman and Chief Executive Officer. “We believe we are well positioned to produce even stronger results in the all-important holiday selling season and the fourth quarter overall.”
Foot Locker, Inc. Company Profile
Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02.
The Direct-to-Customers segment sells athletic footwear, apparel, equipment, and team licensed merchandise for high school and other athletes through Internet and mobile sites, and catalogs. This segment operates sites for eastbay.com, final-score.com, and eastbayteamsales.com, as well as footlocker.com, ladyfootlocker.com, six02.com, kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, footlocker.au, runnerspoint.com, and sidestep-shoes.com.
The company operates stores in North America, Europe, Australia, and New Zealand, Middle East and Germany. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York. – Yahoo Finance
