The American retailer reported a 7% increase in earnings for the three months ending November 1 as compared to the same period last year. The adjusted earnings resulted to be $128 million or $1.21 per share while Wall Street was estimating it to be 63 cents per share. Last year, the firm’s profits amounted to $122 million or $1.13 per share. Footlocker’s revenues increased by 9%, reaching $2.106 billion exceeding the forecasts of $1.94 billion. Same-store sales surged to 7.7% surpassing an expected decline of 0.2%.
The positive results come in as shoppers turn towards athletic sportswear during the back-to-school season even amid the spike in covid-19 cases. The company’s inventories by the end of October were also 8.5% lower at $1.193 billion as compared to last year.
Nike, Foot Locker’s biggest brand partner which contributes around 70% of Foot Locker revenue, reported a decline of 1% in sales to $10.6 billion for the three months ending in August. The brand also noted that its online sales increased by 82% as compared to last year owing to the closure of physical stores due to the pandemic.
Foot Locker opened 27 stores during the quarter while it remodeled or relocated 8 outposts and closed 95 stores including 70 Runners Point locations. The footwear giant currently operates 3,032 stores, as compared to 3,129 at the start of the fiscal year, in 27 countries including stores in North America, Europe, Asia, Australia, and New Zealand.
The firm reported a net income of $265 million, or $2.52 per share, showing an increase from $125 million, or $1.16 per share, as compared to the same period last year. Foot Locker, however, refused to provide full-year guidance owing to the uncertainties created by the pandemic.
Following the news, Foot Locker’s shares rose to a one-year high jumping 5.3% in premarket trading Friday.
Foot Locker plans to shut down all its stores across the U.S. on Thanksgiving while it is still expected to operate on Black Friday. As the number of coronavirus cases keeps rocketing in the world, the retailer has temporarily closed more than 10% of its brick-and-mortar stores owing to government restrictions.
At the end of the third quarter, Foot Locker’s balance sheet shows $1.39 billion in cash with a debt of $131 million.