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A shopper carries a Foot Locker Inc. shopping bag in London, U.K
Hollie Adams/Bloomberg
Foot Locker
stock is jumping after the athletic-shoe retailer reported earnings that more than doubled expectations.
Foot Locker reported an adjusted profit of $2.21 a share, beating forecasts for $1 a share, on sales of $2.28 billion, topping expectations for $2.09 billion.
“Our strong performance this quarter reflects the health of our category, the deep engagement we have with our customers, and the strategic nature of our relationships with our vendor partners,” CEO Richard Johnson said in the company’s earnings release. “This quarter reflects strong results in our women’s and kids’ footwear business along with broad demand for our apparel and accessories offerings, which combined with more limited promotional activity, led to the outstanding top and bottom line results.”
Foot Locker stock is up 11% at $60.39 in premarket trading Friday. Its shares gained 35% this year through Thursday’s close, while the
S&P 500
has risen 17% and the
Dow Jones Industrial Average
has advanced 14%.
“These results reflect FL’s position at the intersection of consumer secular interest in health, the strength of this branded offering (notably
Nike
and Brand Jordan), and its customers’ increased purchasing ability due to higher wages and numerous economic policies,” writes Quo Vadis Capital’s John Zolidis. “We believe the effects of this heady cocktail will continue and the market is underestimating the company’s resulting changed earnings profile.”
The market would seem to agree.
Write to Ben Levisohn at ben.levisohn@barrons.com
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