Foot Locker Q1 Earnings Beat Views, Shares Gain

Shares of

surged over 2 percent in pre-market trading after the company reported upbeat earnings for the first quarter. The New York-based company posted quarterly earnings of $184 million, or $1.29 per share, compared to $162 million, or $1.10 per share, in the year-ago period. Its sales rose 2.6 percent to $1.92 billion from $1.87 billion. However, analysts were projecting a profit of $1.23 per share on revenue of $1.91 billion. The average estimate among 23 Estimize users was for earnings of $1.04 per share and revenue of $1.91 billion. Its comparable-store sales climbed 7.8 percent during the quarter. Its gross margin increased to 35 percent from 34.6 percent, while selling, general, and administrative expense rate rose to 18.0 percent of sales versus 19.0 percent of sales. As of May 2, 2015, inventory levels declined 2.7 percent year-over-year to $1,234 million. During the quarter, the company opened 37 new stores, and closed 41 stores. The company had $986 million in cash and $133 million in debt on its balance sheet. "We have hit the ground running in 2015, producing the most profitable quarter in our history," said Richard Johnson, President and Chief Executive Officer. "We are focused on executing the updated strategic priorities that we described in our investor meeting in March, and the results in the first quarter demonstrate that we remain on the right track, with strong performances across our channels, geographies, banners, and categories. Our core business improved and we made progress on each of our growth pillars, a team accomplishment of which we are all very proud." Foot Locker shares climbed 2.73 percent to $65.75 in pre-market trading.