Foot Locker stock soars after surprise profit outlook and second quarter sales increase

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Actions de Foot Locker Inc. FL,
+ 1,92%
Monday, after the shoe and athletic equipment retailer said it expected to report a surprise tax profit in the second quarter, as the reopening of stores contributed to a surprise increase in sales. The company expects net earnings per share of 38 cents to 42 cents, down from 55 cents a year ago. Excluding non-recurring items, the company expects to post adjusted EPS of 66 cents to 70 cents, while the FactSet consensus was for a loss per share of 60 cents. The company said comparable store sales for the quarter were up about 18%, compared to the FactSet consensus for a 23.6% decline. “As we continued to reopen stores throughout the quarter, we saw strong customer response to our assortments, which we believe was fueled by pent-up demand and the effect of the fiscal stimulus,” said said chief executive Richard Johnson. “This has fueled our in-store sales and also boosted the continued momentum of our digital channels. The stock has fallen 29.5% year-to-date through Friday, while the S&P 500 SPX,
+ 0,06%
gained 3.7%.

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