Foot Locker (FL) stock surges more than 10% in the after-market hours as its third quarter earnings and sales exceeded analysts’ views. The company reported earnings of $0.95 per share on revenue of $1.86 billion compared with the income of $0.87 per share on revenue of $1.87 billion in the last year’s third quarter. Analysts had expected the specialty retailer to post income of $0.92 per share on revenue of $1.85 billion.
Comp-store sales increased 2.9% versus the estimated growth of 2%. Gross margin expanded to 31.6% from 31% in the prior year quarter.
“We’re encouraged by the second consecutive quarter of comparable sales growth, more full-price selling, and greater than expected gross margin expansion,” said CFO Lauren Peters.
During the third quarter, Foot Locker opened 10 new stores, remodeled or relocated 13 stores, and closed 20 stores. As of November 3, 2018, the New York-based company operated 3,266 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand.
“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 Richard Johnson, CEO.
Looking ahead into Q4, the company said that it is well positioned to produce stronger results in the all-important holiday selling season and the fourth quarter overall.
Foot Locker’s peer Dick’s Sporting Goods (DKS) is expected to issue its quarterly results on November 28. A slew of retailers, namely Best Buy (BBY), Target (TGT), Kohl’s Corp. (KSS) and Ross Stores (ROST) reported their recently ended quarterly results before the bell Tuesday.
As of Tuesday’s closing, shares of the Foot Locker have gained 4% in the year-to-date period and 20% in the past 52-weeks. The stock ended today at $46.09, down 5,57%.
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