An worker arranges a sneaker show at a Foot Locker Inc. retailer contained in the South Park Mall in Strongsville, Ohio.Luke Sharrett | Bloomberg |
An worker arranges a sneaker show at a Foot Locker Inc. retailer contained in the South Park Mall in Strongsville, Ohio.
Luke Sharrett | Bloomberg | Getty Photographs
Foot Locker shares soared greater than 10% in early buying and selling Friday after the corporate crushed analysts’ fiscal second-quarter earnings estimates and voiced optimism concerning the again half of the yr.
Shoppers have continued to spend on athletic footwear and exercise attire in the course of the Covid pandemic, with these segments outperforming others equivalent to costume put on and excessive heels. Now, dad and mom are budgeting their paychecks to purchase new Nike and Adidas sneakers for his or her youngsters who’re making ready to go again to highschool.
Foot Locker reported internet revenue for the quarter ended July 31 of $430 million, or $4.09 per share, in contrast with $45 million, or 43 cents per share, a yr earlier. Excluding one-time features, the corporate earned $2.21 per share. Analysts polled by Refinitiv have been searching for adjusted earnings per share of $1.01.
Income surged 9.5% to $2.28 billion from $2.08 billion a yr earlier. That topped expectations for $2.09 billion.
Foot Locker’s comparable-store gross sales rose 6.9%. Analysts polled by StreetAccount had been searching for a 0.2% decline.
Chief Government Richard Johnson stated the corporate noticed robust demand in its girls’s and youngsters’ footwear enterprise, along with its attire and equipment segments. Foot Locker additionally saved promotions in test, fueling earnings, he stated.
Chief Monetary Officer Andrew Web page stated the retailer stays “cautiously optimistic” about its outlook for the second half of the yr.
“Recognizing we’re nonetheless working in an unsure setting attributable to Covid-19, we proceed to maintain an in depth eye on the enterprise, together with short-term retailer closures and provide chain challenges,” he stated within the information launch.
Earlier this month, Foot Locker introduced plans to purchase two smaller shoe retailer chains for about $1.1 billion money to increase its attain exterior malls and into Asia.
Foot Locker shares are up about 35% yr up to now. The corporate’s market cap is $5.63 billion.
Discover the complete earnings press launch from Foot Locker right here.