Foot Locker Shares Jump On Earnings Beat

Foot Locker Inc. (NYSE:FL) posted better-than-expected earnings on Friday as the athletic footwear retailer reported improved sales in its latest quarter.

Shares jumped more than 11 percent to $68.67 in the early trading.

The company said that profit was $127 million, or 94 cents a share, in the second quarter, compared with $119 million, or 84 cents a share, a year earlier. The result topped analysts’ estimates of 90 cents per share.

Revenue rose 5 percent to $1.78 billion in the second quarter, topping analysts’ estimates of $1.76 billion in sales.

Foot Locker’s same-store sales rose 4.7 percent, topping Wall Street’s expectations for 3.9 percent growth. During the first quarter, comparable sales growth in its basketball, running, classic footwear and apparel business were all positive, erasing the concerns that the popular segment was starting to cool.

“Within the second quarter, we drove comparable sales gains across basketball, running, and classic footwear, as well as apparel,” CEO Richard Johnson said. “We also posted gains in all regions and channels in which we operate.”

The company said that the momentum in basketball would continue, signing that the latest shoes from Stephen Curry and Kevin Durant helped boost the company’s sales in that segment.

“There’s only a couple of places where people will line up for products,” Johnson said. “We know that our core consumers want to be in our stores.”

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