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.
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.
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.
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.