Foot Locker Rises After Earnings Beat Estimates on Strong Sales

(Bloomberg) -- Foot Locker Inc. rose in early trading after surprisingly robust same-store sales powered earnings past analysts’ estimates.

• The athletic-footwear retailer said Friday that comparable sales rose 7.7% in the period, better than the 0.9% analysts expected according to Consensus Metrix. Adjusted earnings of $1.21 a share topped the estimate of 66 cents compiled by Bloomberg.
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Key Insights

• Foot Locker continued the resilience it has shown earlier in the pandemic, although the pace slowed somewhat from the second quarter. That period, reported in August, saw same-store sales surge 18%. The company cited fiscal stimulus as aiding its second-quarter results -- a factor notably absent more recently.
• The New York-based company said back-to-school sales were late to kick in because of Covid-related delays but that momentum built as the quarter wore on. More than 10% of Foot Locker’s stores are temporarily closed due to the pandemic.
• Foot Locker again declined to provide 2020 guidance, though the company said its $2 billion in liquidity leaves it financially and operationally prepared to navigate the continuing upheaval.

Market Reaction

• Foot Locker shares rose as much as 6.8% in premarket trading and were up 3.7% to $42.87 at 7:16 a.m. in New York. The stock was up 6% this year through Thursday.

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• Read the statement.
• See Foot Locker estimates.

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