Foot Locker Q3 Profit Beats Estimates; Comps. Up 7.7%

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New York-based specialty athletic retailer, Foot Locker, Inc. (FL) delivered a strong top- and bottom-line performance in the third quarter, surpassing analysts' estimates. The company's gross margin rate decreased to 30.9 percent from 32.1 percent a year ago. Comparable-store sales increased by 7.7 percent. Given the ongoing uncertainty due to COVID-19, the company is not providing full-year 2020 guidance.

Third quarter adjusted earnings per share increased to $1.21 from $1.13, previous year. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $0.62, for the quarter. Analysts' estimates typically exclude special items. Non-GAAP earnings were $128 million, compared to $122 million, a year ago.

Third quarter total sales increased 9.0 percent, to $2.11 billion from $1.93 billion, last year. Excluding the effect of foreign exchange rate fluctuations, total sales for the third quarter increased by 7.7 percent. Analysts expected revenue of $1.94 billion, for the quarter.

The company's cash totaled $1.39 billion, while debt on its balance sheet was $131 million.

"With close to $2 billion in liquidity, we believe our company is well prepared both financially and operationally to continue navigating the ongoing pandemic," said Lauren Peters, EVP and CFO.

Shares of Foot Locker were up more than 4% in pre-market trade on Friday.

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