Foot Locker, Inc. reported second quarter revenues on Friday of $1.37 billion, up 7.2 percent on the year. This compares to analysts expectations of $1.35 billion. Meanwhile, Foot Locker stock had its "buy" rating reaffirmed by research analysts at Janney Montgomery Scott in a report released on Monday.
Sales at established stores jumped 9.8 percent. Adjusted earnings per share and quarterly revenues topped analysts' expectations. Following the news, Foot Locker shares gained more than 6.5 percent in early dealings.
Despite the economic worries, comparable sales in Europe fell a mere 0.5 percent. Total revenues rose as the company opened 30 new stores in the continent.
"We have achieved consistently strong financial and operational results since we began implementing our long-term plan over two years ago. This consistency was also evident with the good profitability we achieved this quarter across our divisions, from the North American stores, to Europe, and to our direct-to-customer business," Chairman and CEO Ken Hicks said in a statement.
The comments in the earnings transcript were also very promising. Comparable store sales rose 9.8 percent. Sales grew in high single digits in May and June, and double digits in July.
The New York-based company reported net income of $59.0 million or $0.39 per share for the second quarter, higher than $37.0 million or $0.24 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter. Analysts' estimate typically exclude special items.
During the first half of the year, the company opened 47 new stores, remodeled/relocated 109 and closed 62, taking its total number of stores to 3,354.
he Company's merchandise inventory at the end of the second quarter was $1,231 million, 3 percent lower than at the end of the second quarter last year. On a per store basis using constant currencies, inventory grew approximately 1 percent.
