Foot Locker reported revenues of $2.28 billion, topping the $2.09 billion expected and marking a 9.5% increase from a year earlier. At the same time, the company earned $2.21 per share, more than double than expected.
While analysts were looking for a 0.2% decline in comparable-store sales, Foot Locker revealed a 6.9% jump. The surges resulted from consumer spending on athletic footwear and workout apparel during the COVID-19 pandemic.
Earlier this month, the retailer announced it would buy two smaller chains, for $1.1 billion cash, in an attempt to extend its Asian footprint. Foot Looker has been looking for ways to grow outside shopping malls, where shopper visits have been suppressed during the pandemic. Moreover, Andrew Page, Foot Locker CFO, said that the company remains “cautiously optimistic” regarding the outlook for the second half of the year.
After the news hit the wires, Foot Locker share price went up 8%. Since the beginning of the week, Foot Locker shares gained 35%, reaching a market cap of $5.63 billion. For the same period, USA500 added 17.3%.
Sources: cnbc.com, marketwatch.com
