In a sea of difficult earnings reports, Foot Locker has clocked in as an island of relative strength. Earnings for the second quarter of 2016 were $127 million, or 94 cents per share, up from $119 million, or 84 cents per share, a year ago, beating analyst expectations of 90 cents per share. Revenue was up $1.78 billion from $1.7 billion at this time a year ago, again beating pre-earnings estimates of $1.76 billion. The all-important same-store sales measure was also in positive territory with a 3.8 percent uptick.
Foot Locker opened 23 new stores during Q2, while renovating or relocating another 64. Inventory was on the rise 1.7 percent to $1.34 billion.
Going forward, Foot Locker seems to be orienting toward a growth-heavy future, particularly in its Lady Foot Locker brand, which most experts believed to have been little more than a footnote until very recently.
Touting the quarterly show of strength, Foot Locker CFO Lauren Peters said Friday that “substantial and thoughtful investments in its stores, digital sites and infrastructure” have paid off in increased productivity.
Bolstering Foot Locker’s performance during the quarter and for much of the year has been the explosive popularity of athleisure wear and the sneaker trends that it often rises and falls on.
“Foot Locker has strong leadership positions in the athletic industry, with the most important being our deep understanding of the core customer for each of our banners,” CEO and Chairman Richard Johnson said Friday following the earnings release..
“We share this understanding with our key vendors, which enables us to partner with them to deliver the trend-right, premium footwear and apparel assortments our customers seek, which in turn has led to consistently outstanding financial results such as we announced today.”