Foot Locker Q3 Earnings Beat Views, Shares Surge

Shares of Foot Locker, Inc. (NYSE: FL) jumped more than 8 percent in pre-market trading after the company reported upbeat results for the third quarter on Friday.The New York-based company posted quarterly net income of $80 million, or $0.57 per share, down from $120 million, or $0.82 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings came in at $1.00 per share. Its sales climbed 3.6 percent to $1.79 billion. However, analysts were expecting earnings of $0.95 per share on revenue of $1.78 billion. The average estimate among 78 Estimize users was for earnings of $0.96 per share and revenue of $1.79 billion.Same-store sales increased 8.7 percent for the quarter.Its gross margin rate expanded to 33.8 percent of sales, compared to 33.2 percent of sales.At October 31, 2015, Foot Locker's merchandise inventories rose 0.9 percent year-over-year to $1,336 million.During the third quarter, Foot Locker opened thirty new stores, remodeled or relocated forty eight stores, and closed sixteen stores."This quarter, in fact this entire year, has offered a perfect illustration of how building diversity into our business has helped us sustain record-setting growth over multiple quarters and years," said Richard Johnson, President and Chief Executive Officer. "We have built strength across different banners and channels; we have a global footprint; we have excellent momentum in men's, women's, and kids'; and we have multiple legs to our product category stool, with leadership positions in basketball, running, and classic sneakers."Foot Locker shares gained 8.71 percent to $66.89 in pre-market trading.