Foot Locker, the American sportswear and footwear retailer, revealed its third-quarter results after trading hours along with retailers Target (TGT) and Kohl (KSS). But unlike Target and Kohl, which both disappointed investors, the market welcomed FL’s expectation-beating third-quarter performance and strong pricing power and pushed shares more than 12% higher in after-hours trade.
FL reported comparable sales growth of 2.9% in the third-quarter, better than analysts’ estimate of 2%. In terms of total sales, FL reported a 0.5% fall to $1.86 billion - managing to narrowly beat the consensus revenue expectations of $1.85 billion. FL further added that sales were up 0.4% excluding currency fluctuations.
Net income for the quarter stood at $130 million, or $1.14 a share, up from $102 million, or 81 cents a share, in the same quarter a year-ago. Excluding one-time items, FL’s adjusted earnings per share rose to 95 cents from 87 cents, around 3 cents more than analysts’ expectation of 92 cents. FL’s gross margin expanded to 31.6% from 31%, and same-store sales growth was up by 2.9% versus analysts' expectation of 1.6%.
FL’s Chief Executive Richard Johnson attributed its comparable sales growth and stronger earnings to the company’s strategic partnerships with vendors.