Foot Locker Inc. (NYSE: FL) reported its third quarter earnings for fiscal year 2017. The retailer reported better than expected earnings as well as beating analysts’ estimates, sending shares over 24 percent midday on Friday.
For the third quarter, Foot Locker reported revenue of $1.87 billion, falling short from the previous year’s same quarter of $1.88 billion, but beating analysts’ estimates by $40 million. The company reported an EPS of $0.87, beating analysts’ estimates by $0.07.
Third quarter comparable-store sales fell 3.7 percent. Total sales overall decreased 2.3 percent year over year due to unfavorable foreign currency fluctuations.
Foot Locker opened 66 new locations, but shutting down a total of 80, and by the end of the third quarter, Foot Locker had 3,349 locations. At the beginning of the year, the retailer had 3,363 locations opened.
“Despite the highly promotional environment we still see in the marketplace, the availability of premium product is gradually improving compared to the first half of the year, and we believe we can achieve, and perhaps modestly exceed, the top- and bottom-line guidance we gave for the fourth quarter back in August,” said Richard Johnson, Chairman and Chief Executive Officer.
“We are adjusting our course proactively, including creating new initiatives with key vendors and making critical investments in our digital platforms and supply chain, to ensure that Foot Locker will continue to thrive at the center of sneaker culture and, more broadly, youth culture,” Johnson added.
The growing competition against e-Commerce businesses, such as Amazon, negatively impact companies like Foot Locker that primarily revolve around in-store locations. As consumers begin to turn to using digital markets, it puts retailers in the dark.
Many retailers have combated that e-Commerce competition by integrating their own digital business.