Foot Locker tops profit and sales estimates as it heads into the holidays
today Nov 21, 2018
Foot Locker Retail, Inc. reported third-quarter sales and profits which beat analysts’ expectations on Tuesday, pushing shares in the NYC-based sports and footwear retailer up more than 12% in after-hours trading.
The company announced total net income of $130 million in the quarter, up from $102 million in the prior-year period.
Total net sales increased 0.5% (0.4% in constant currencies) to $1,860 million, compared to sales of $1,870 million in Q3 2017, while comps increased 2.9%.
“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 Foot Locker CEO and chairman Richard Johnson in a release. “We believe we are well positioned to produce even stronger results in the all-important holiday selling season and the fourth quarter overall.”
The progress continues a pattern of positive quarterly results seen by the company since the beginning of the year, with sales in the second quarter, for example, increasing 4.8% to $1.78 billion.
Year to date, the company reported net income of $383 million, up from $333 million. Sales rose 1.7% (0.7% in constant currencies) to $5,667 million, from $5,572 million in the prior-year period, with comps increasing 0.1%.
Having opened 10 stores and closed 20 over the course of the third quarter, Foot Locker now operates a network of 3,266 locations in 26 countries across North America, Europe, Asia, Australia and New Zealand.
During the quarter, the company also welcomed a new SVP and chief of human resources, Elizabeth S. Norberg, who joined the retailer from Loews Hotels & Co. in September.
News of Foot Locker's strong performance comes on a day when US retail stocks have been slipping in the wake of weak earnings reports from big industry names including Target and Kohl's.
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