Foot Locker steps up its game to beat analyst expectations
Foot Locker surpassed Wall Street expectations today as it reported higher than predicted growth in both sales and earnings.
The sports retailer saw sales grow 4.8 per cent to $1.78bn (£1.39bn) in the three months to 4 August, pipping analyst estimates.
Meanwhile net income climbed to $88m, compared to just $51m in the same period last year.
But same-store sales increased 0.5 per cent, missing a target of 0.7 per cent.
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Why it's interesting
Like their UK counterparts, US retailers are struggling to draw shoppers to bricks-and-mortar stores and convince them not to seek alternatives online.
Foot Locker has a huge estate of 3,276 stores globally, and although it closed more than it opened this quarter, the company shows no signs of abandoning traditional retail.
To improve profitability, the group has kept a better handle on inventory, leaving it with $1.25bn worth of stock at the end of the quarter. This is 2.8 per cent lower than the total this time last year.
What Foot Locker said
“Our performance reflects the work we are doing on several fronts to position the Company to succeed in a rapidly evolving retail environment,” said Richard Johnson, chairman and chief executive. “We remain optimistic that our improving product flow and depth in premium styles positions us to deliver stronger comparable sales growth in the second half of 2018.”
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