Foot Locker Posts Strong First Quarter Results
Foot Locker, Inc. (NYSE: FL – $64.31) the New York-based specialty athletic retailer, reported financial results for its first quarter ended May 2, 2015. Net income was $184 million, or $1.29 per share, compared with net income of $162 million, or $1.10 per share, last year, a 17% increase and six cents ahead of consensus. First quarter comparable-store sales increased 7.8%. Sales increased 2.6% to $1.916 billion this year, compared with sales of $1.868 billion for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the first quarter increased 7.9%. The company’s gross margin rate improved to 35.0% of sales from 34.6% a year ago, while the selling, general and administrative expense rate improved to 18.0% of sales from 19.0%. During the first quarter, the company opened 37 new stores, remodeled or relocated 55 stores and closed 41 stores. As of May 2, 2015, the company operated 3,419 outlets in 23 countries in North America, Europe, Australia and New Zealand. In addition, 55 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 27 franchised Runners Point and Sidestep stores in Germany and Switzerland. The announcement ticked the shares higher in today’s trading to a new all-time high of $65.80. Looking ahead, the Street is forecasting total earnings per share for the current fiscal year of $3.93 and $4.35 for next year, which should provide for continued investor interest in the shares of FL for the foreseeable future.