Consumers continued to spend on athletic shoes and workout clothes during the Covid pandemic, with these segments surpassing others such as dress clothes and high heels. Now parents are budgeting their paychecks to buy new Nike and Adidas sneakers for their kids as they prepare to go back to school.
Foot Locker reported net income for the quarter ended July 31 of $ 430 million, or $ 4.09 per share, from $ 45 million, or 43 cents per share, a year earlier. Excluding one-time gains, the company earned $ 2.21 per share. Analysts polled by Refinitiv were looking for adjusted earnings per share of $ 1.01.
Revenue jumped 9.5% to $ 2.28 billion from $ 2.08 billion a year earlier. It exceeded expectations by $ 2.09 billion.
Foot Locker’s same-store sales increased 6.9%. Analysts polled by StreetAccount had expected a drop of 0.2%.
Chief Executive Officer Richard Johnson said the company is seeing strong demand in its women’s and children’s footwear business, in addition to its clothing and accessories segments. Foot Locker also controlled promotions, fueling profits, he said.
CFO Andrew Page said the retailer remained “cautiously optimistic” about its outlook for the second half of the year.
“Recognizing that we still operate in an uncertain environment due to Covid-19, we continue to closely monitor activity, including temporary store closures and supply chain challenges,” he said. stated in the press release.
Earlier this month, Foot Locker announced plans to buy two small shoe store chains for around $ 1.1 billion in cash to expand its reach outside of malls and into Asia.
Shares of Foot Locker have risen about 35% year-to-date. The company’s market capitalization is $ 5.63 billion.
Find the full press release on Foot Locker’s results here.