Foot Locker Q2 Earnings Slightly Miss, Sales Rise

In Reports, What's New, Industry News by Accessories Staff

New apparel and accessories from Nike's latest KD VI Collection at Foot Locker stores.

New apparel and accessories from Nike’s latest KD VI Collection at Foot Locker stores.

New York—Foot Locker revealed Friday lower-than-expected second quarter earnings but still reiterated its full year forecast.

For the quarter ended August 3, the sports apparel and footwear retailer reported net income of $66 million, or 44 cents a share, compared with a net profit of $59 million, or 39 cents, a year ago. Excluding one-time items such as its $94 million purchase of Runners Point Group in May, adjusted earnings were 46 cents a share. That missed analysts’ average estimate by 1 penny.

Net revenue rose 6.4% to $1.45 billion, in line with analysts’ estimates. Comparable store sales grew 1.8%.

“Sales in the second quarter were more challenging than we planned for, especially in the United States,” CEO Ken Hicks said. “Despite this headwind, we produced second quarter ongoing profit and sales results that were our best ever. We remain confident that we can achieve a mid-single digit comparable sales gain and a double digit percentage profit increase for fiscal 2013.”

The company’s net income for the first six months of the year increased to $204 million, or $1.34 a share, compared to net income of $187 million, or $1.21 a share, for the first six months of 2012.

Year-to-date sales were $3,092 million, an increase of 5% compared with the corresponding six month period of 2012. Year-to-date comparable store sales increased 3.5%.

 

 

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Kristy Price - Student / Nottingham Trent University