Categories Earnings, Retail

Foot Locker (FL) stock jumps as Q3 earnings rise on strong comp sales, beat Street view

Sneaker retailer Foot Locker (NYSE: FL) reported strong comparable-store sales for the third quarter, reversing the recent trend. Earnings increased sharply, aided by a 4% sales growth, and topped the Street view. The company’s stock gained around 4% during Friday’s pre-market trading session.

Foot Locker (FL) stock jumps as Q3 earnings rise on strong comp sales

Comparable store sales climbed 5.7% during the three-month period, representing an improvement from the previous quarters. Consequently, net sales moved up 4% annually to $1.93 billion but came in slightly below the consensus forecast.

Earnings up 19%

There was a 19% increase in adjusted profit to $1.13 per share, which also exceeded the Street view. Net income, including special items, was $125 million or $1.16 per share, compared to $130 million or $1.14 per share in the third quarter of 2018.

Related: Nike tops Q1 2020 estimates; stock advances

Richard Johnson, President and CEO, said, “Across the Company, we are making great strides in implementing our four strategic imperatives, which are designed to ensure we are best positioned to compete in the retail marketplace by inspiring and empowering youth culture while also strengthening our bottom line and driving value for our shareholders.”

Opens 11 Stores

During the period, Foot Locker opened 11 new stores, remodeled or relocated 34, and closed 25 units. At the end of the quarter, it operated 3,160 own stores in 27 countries; 128 franchised Foot Locker stores in the Middle East; and 10 franchised Runners Point stores in Germany.

After a rather unimpressive start to the year, the company had initiated measures to ramp up operations, such as an extensive store remodeling program aimed at improving customer experience through special features like in-store shops.

Also Read:  Costco Q1 Earnings Preview: Comp sales growth lifts expectations

Dick’s to Report Q3

Among others in the sector, Dick’s Sporting Goods (DKS) will be unveiling its third-quarter numbers on November 26, before the opening bell. Market watchers are looking for a 5% decline in earnings to $0.37 per share.

Also see: Foot Locker Q2 2019 Earnings Conference Call Transcript

Foot Locker’s shares took a severe beating after its performance in the initial months of the year fell short of expectations. Overall, the stock has declined 21% in the past twelve months, all along underperforming the market.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Levi Strauss (LEVI) Q1 profit beats estimates, withdraws annual outlook

Levi Strauss & Co. (NYSE: LEVI) reported a 4% increase in earnings for the first quarter of 2020 helped by lower income tax expenses despite a rise in operating expenses.

Vail Resorts (MTN) can reward investors once it gets past market crisis

The recent travel restrictions have taken a heavy toll on the tourism industry, leaving almost all destinations deserted. Vail Resorts Inc. (NYSE: MTN), a leading operator of mountain ski resorts,

The coming months will prove to be a testing time for Boeing (BA)

Shares of Boeing Co. (NYSE: BA) were up 13% in afternoon hours on Monday. The stock is down 63% from its 52-week high of $391. As the aviation industry suffers

2 thoughts on “Foot Locker (FL) stock jumps as Q3 earnings rise on strong comp sales, beat Street view

Comments are closed.