Foot Locker (FL) Stock Sprints Ahead on Q2 Earnings Beat

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Foot Locker, Inc. (NYSE:FL) had a positive quarter that was boosted by increased sales in a number of areas.

Foot LockerThe footwear retailer reported that it earned 94 cents per diluted share over its second quarter, topping analysts’ expectations of 90 cents per diluted share. Foot Locker’s basketball, running and classic shoes all sold exceptionally well in the three-month period.

The company’s Canada stores experienced gains in its same-store sales, while the company’s athletic brand — Champs Sports — also improved. CEO Dick Johnson commented in these results, noting that many of its customers don’t run or play basketball but still buy those shoes because they look good and they’re part of the sneaker culture.

The retailer continues receiving plenty of foot traffic at a time when many prefer to buy products online. Higher foot traffic for Foot Locker — especially in malls — goes against the growing trend of other department stores and retail chains losing foot traffic.

A weak spot for the company was foot traffic in its Europe locations, which slowed down due to declines in Foot Locker’s Runners Point and Sidestep, brands that are based in Germany.

It was also a dim quarter for Six:02, which focuses on the retailer’s women’s business, experiencing same-store slumps following two years of gains in this category.

Foot Locker’s cash and cash equivalents amounted to $945 million following the quarter, compared to $970 million a year ago.

FL stock is up 10.7% Friday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/foot-locker-fl-stock-2/.

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