Specialty athletic retailer Foot Locker, Inc. (FL) Friday reported higher profit and revenue for the first quarter that topped Wall Street estimates.
Net income increased to $138 million from $128 million in the prior year. Earnings per share grew to $0.90 from $0.83. The company earned $104 million or $0.68 per share in the preceding quarter.
Excluding costs related to the pending acquisition of Runners Point Group, the latest earnings per share totaled $0.91. On average, 16 analysts polled by Thomson Reuters expected earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 3.8 percent to $1.64 billion from $1.58 billion in the previous year, but was lower than $1.71 billion generated in the fourth quarter of the previous year. Analysts expected revenues of $1.63 billion.
Excluding the effect of currency exchange, total sales for the first quarter increased 4.1 percent. Comparable-store sales increased 5.2 percent in the quarter.
Ken Hicks, CEO, said, ''I am pleased to report that the thoughtful implementation of our strategic priorities continues to deliver record financial and operational results for our shareholders and other stakeholders."
At May 4, the company's merchandise inventory was $1.17 billion, up 2 percent from the end of the first quarter last year.
The company did not repurchase any shares during the first quarter due to the ongoing negotiations related to the acquisition of Runners Point Group. However, the firm plans to reinitiate the program in the second quarter.
During the quarter, the company opened 25 new stores, remodeled or relocated 64 stores and closed 39 stores.
As of May 4, the company operated 3,321 stores in 23 countries in North America, Europe, Australia, and New Zealand. Additionally, 45 franchised stores were operating in the Middle East and South Korea.
FL closed at $35.68 on Thursday. The stock is down 1.9 percent in pre-market trading.
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