Foot Locker (FL
52.75, -0.45) holds a premarket loss of 0.9% despite beating quarterly
The footwear retailer reported above-consensus second quarter earnings of $0.75 per share on a 4.8% year/year increase in revenue to $1.78 bln, which was also better than expected. The company's revenue growth rate was boosted by favorable currency translations. Excluding the effect of currency fluctuations, sales grew 3.9% year/year.
Comparable store sales increased 0.5%. Chairman and CEO Richard Johnson said he expects that improving product flow and depth in offerings puts the company on track to improve the comparable sales growth rate in the second half of the fiscal year.
Gross margin improved to 30.2% from 29.6% one year ago. The increase took place even as selling, general, and administrative expenses increased 12.1% to $380 mln. Selling, general, and, administrative expenses as percentage of revenue increased to 21.3% from 19.9% one year ago.
Long term debt decreased 1.6% to $124 mln.
Foot Locker opened 13 new stores during the second quarter, remodeled or relocated 33 locations, and closed 21 locations. The company ended the quarter with 3,276 stores across 24 countries. The company had 107 franchised locations in the Middle East and ten franchised Runners Point stores in Germany at the end of the quarter.
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