Foot Locker Results Top Views on Sales Strength
August 21 2015 - 8:00AM
Dow Jones News
Foot Locker Inc. on Friday posted a better-than-expected 29%
jump in profit in its second quarter amid broad-based sales
growth.
Foot Locker has posted strong results recently amid growth in
categories such as basketball gear and running styles.
For Foot Locker, workout clothes, sports jerseys and training
gear had been used mainly as a tool to drive customers to its
stores to purchase shoes, which make up about three-quarters of the
retailer's sales.
But as the U.S. sportswear industry shifts toward more fashion-
and lifestyle-focused athletic looks and away from technical sports
products, Foot Locker has been trying to do more with smaller
apparel offerings compared with department stores such as Macy's
Inc.
In the latest quarter, sales excluding newly opened and closed
locations jumped 9.6%.
"We continued to achieve broad-based and consistent strength
across geographies, banners, channels, and categories," said Chief
Executive Richard Johnson in a news release.
Overall, for the period ended Aug. 1, Foot Locker posted
earnings of $119 million, or 84 cents a share, up from $92 million,
or 63 cents a share, a year earlier.
Sales grew 3.3% to $1.7 billion, or 9.9% excluding currency
impacts.
Analysts polled by Thomson Reuters had expected earnings of 69
cents a share and revenue of $1.66 billion.
Gross margin improved to 32.6% from 32% a year earlier, while
inventory levels grew 3.3% excluding currency fluctuations.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 21, 2015 07:45 ET (11:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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