For the quarter ended May 3, Foot Locker posted net income of $162 million, or $1.10 a share, compared with $138 million or 90 cents a share last year. Excluding items, earnings were $1.11 a share. That was ahead of the $1.06 estimate by analysts.
Net revenue increased 14% to $1.87 billion, ahead of analysts’ consensus for $1.79 billion in sales. Comparable store sales were up 7.6%. (Excluding the effect of foreign currency fluctuations, total sales rose 13.4%).
Gross margin widened to 34.6% from 34.2%, while the rate of selling, general, and administrative expenses improved to 19% of sales from 19.2%.
“We are off to a great start in 2014, with our first quarter results representing the highest quarterly sales and profits in our history as an athletic company—for the third consecutive year,” said Ken C. Hicks, chairman/ceo. “Every person in our company is playing an important role in producing our current strong performance, bringing passion, energy, and excellence to the execution of our strategies and initiatives as we work towards the achievement of our long-term financial and operational objectives.”