Foot Locker shares surged 5.96 percent on Friday (March 1) after the company beat Wall Street’s projections and reported same-store sales growth of 9.7 percent, more than double the expected 4.6 percent.
According to CNBC, the shoe retailer also reported fourth-quarter earnings of $1.56 per share, beating Refinitiv estimates of $1.40, while sales totaled $2.27 billion.
Company management credited its emphasis on product diversity, strategic partnerships and improvements to its in-store and online presence for the boost. Just last month, the company invested $100 million in Goat Group, an online platform that sells and resells rare and classic sneakers.
The two companies plan to collaborate both online and in physical stores on exclusive shopping opportunities. Foot Locker currently has around 3,000 stores in 27 countries, which could serve as locations for Goat Group’s products.
Foot Locker Chairman and CEO Richard Johnson said at the time of the announcement, “We are excited to leverage Goat Group’s technology to further innovate the sneaker buying experience and utilize their best-in-class online marketplace to help meet the ever-growing global demand for the latest product. Together, Foot Locker and Goat Group’s shared commitment to trust and authenticity in the sneaker industry will provide consumers with unparalleled experiences and diversified offerings.”
That same month, Foot Locker backed children’s clothing brand Rockets of Awesome with $12.5 million in funding. The brand will start selling on the children’s retailer’s website and bring mini-stores to Kids Foot Locker venues.
The funding will also be used to help the children’s brand launch its first brick-and-mortar store, which will reportedly open before the back-to-school shopping season. Until now, the company’s physical presence has been limited to a few pop-up shops.
Foot Locker has been investing heavily in online companies as of late, including women’s activewear company Carbon38, children’s brand Super Heroic and Pensole Footwear Design Academy.