UPDATE: Foot Locker Q2 Profit Beats Estimates, Shares Jump
(Benzinga Lightning Feed Via Acquire Media NewsEdge) Shares of Foot Locker (NYSE: FL) surged more than 4% in pre-market trading after the company reported stronger-than-expected fiscal second-quarter results.
The New York-based company posted a quarterly profit of $92 million, or $0.63 per share, versus a year-ago profit of $66 million, or $0.44 per share. Excluding non-recurring items, Foot Locker's adjusted earnings came in at $0.64 per share.
Its sales climbed 13% to $1.64 billion. Excluding the effect of foreign currency fluctuations, Foot Locker's sales surged 11.7%. However, analysts were expecting earnings of $0.54 per share on revenue of $1.57 billion.
Foot Locker's same-store sales surged 7% in the quarter.
Its gross margin rate widened to 32.0% of sales versus 31.2%, while the selling, general, and administrative expense rate increased to 20.9% of sales versus 21.6%.
During the quarter, Foot Locker repurchased 1.33 million shares for $66 million. Foot Locker opened 14 new stores, remodeled/relocated 112 stores and closed 18 stores in the quarter.
Foot Locker's cash, cash equivalents, and short-term investments came in at $957 million and the debt totaled $137 million on its balance sheet.
Ken C. Hicks, Chairman of the Board and Chief Executive Officer said, "We delivered excellent financial and operational results through the outstanding execution of our strategic priorities. This continues to be a winning formula for us, and we remain committed to taking full advantage of the many opportunities we have identified --- over the near, intermediate, and longer terms --- to continue producing a consistent, strong performance."
Foot Locker shares climbed 4.24% to $54.80 in pre-market trading.
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