Foot Locker Beats Q2 Expectations

reported better-than-expected earnings for the second quarter on Friday. The New York-based company reported quarterly net income of $119 million, or $0.84 per share, versus $92 million, or $0.63 per share, in the year-ago period. Its total sales rose 3.3 percent year-over-year to $1.7 billion. However, analysts were expecting earnings of $0.69 per share on revenue of $1.66 billion. The average estimate among 27 Estimize users was for earnings of $0.73 per share and revenue of $1.67 billion. Its comparable-store sales climbed 9.6 percent for the quarter. Its gross margin rate expanded to 32.6 percent of sales, versus 32.0 percent in the year-earlier period. Selling, general, and administrative expense rate increased to 19.5 percent of sales, compared to 20.9 percent of sales. During the quarter, the company repurchased 1.2 million shares for approximately $76 million. At August 1, 2015, Foot Locker's merchandise inventories declined 1.3 percent year-over-year to $1,317 million. During the quarter, Foot Locker opened twenty one new stores, closed twenty one stores and remodeled or relocated sixty five stores. "We extended the momentum with which we started 2015, generating outstanding quarterly sales and profits in the second quarter," said Richard Johnson, President and Chief Executive Officer. "We continued to achieve broad-based and consistent strength across geographies, banners, channels, and categories." Foot Locker shares fell 3.16 percent to close at $71.72 yesterday.