Categories AlphaGraphs, IPO, Retail

Foot Locker’s shares jump 13% after Q4 results top estimates

Foot Locker Inc. (FL) surpassed market estimates on both revenue and earnings for the fourth quarter of 2018, sending the stock soaring over 13% in premarket hours on Friday.

Total sales of $2.27 billion were up 2.8% from the same period last year. Excluding the effect of foreign exchange rate fluctuations, sales grew 4.2%. Comparable-store sales rose 9.7%.

Foot Locker quarterly comparable sales trend Q4 2018

 

 

On a GAAP basis, the company reported a net income of $158 million, or $1.39 per share, compared to a net loss of $49 million, or $0.40 per share, in the year-ago quarter. Last year’s results included higher charges and income tax expenses. Adjusted EPS grew 37% to $1.56.

At February 2, 2019, merchandise inventories were $1.26 billion, down 0.7% from the same period last year. On a constant-currency basis, inventory increased 1.3%.

During the fourth quarter, Foot Locker opened 11 new stores, remodeled or relocated 33 stores and closed 56 stores. As of February 2, 2019, the company operated 3,221 stores in 27 countries.

Last month, Foot Locker announced its capital allocation plans for 2019. These include a 10% increase in dividend, a new $1.2 billion share repurchase program and a $275 million capital expenditure program. The capital spending reflects increased investments in the company’s store fleet and its digital initiatives.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Also Read:  Macy's stock rises after Q2 earnings beat: Infographic

Most Popular

COVID-19 drove retailers up the digital path years ahead than anticipated

Earlier we looked into how, during the COVID-19 pandemic, retailers saw changing trends in terms of their assortments and how the acceleration of online shopping led many of them to

Snowflake (SNOW) creates a record as the most successful software IPO ever; stock more than doubles

Data is at the heart of business innovation. Recognizing this trend, companies are seeking ways to transform their businesses by capturing, analyzing, and mobilizing data. The public cloud is becoming

Adobe (ADBE) sees new tailwinds as virtual shift gathers steam

The second half has been highly rewarding for design software maker Adobe Inc. (NASDAQ: ADBE) amid stable demand for digital content solutions. The company has remained unaffected by the virus-related

Top