Foot Locker Reports 18.6 Pct Comp Sales Rise

Foot Locker, Inc. reported that second-quarter comparable-store sales rose 18.6 percent, as the sportswear retailer reported better-than-expected earnings and reinstated its quarterly dividend program, according to a Friday (Aug. 21) announcement.

“Despite the challenging backdrop of the pandemic and social unrest, we achieved strong second-quarter results led by our digital business, with a return to growth in both the top and bottom line,” Foot Locker President and Chief Executive Officer Richard Johnson said in the announcement. “As our global fleet of stores reopened, our customers responded with enthusiasm and energy to our assortments and visited our stores with a high intent to purchase.”

Foot Locker said it restarted its quarterly dividend program, as it had a formidable liquidity position and a more stalwart cash forecast. The company set a 15-cents-per-share cash dividend on its stock, which will be payable on Oct. 30 to shareholders registered as of Oct. 16.

The retailer opened 18 new retail locations in the second quarter and renovated or moved 26 stores, while shuttering 31 locations. It ran 3,100 retail locations in 27 nations as of the beginning of August. Also, 134 franchised Foot Locker stores were in operation in the Middle East, in addition to four franchised Runners Point locations in Germany.

Foot Locker said it doesn’t currently intend to offer an outlook for the full year, given uncertainty related to the coronavirus pandemic.

“Looking ahead, we believe the company is well-positioned financially to maneuver through the evolving COVID-19 pandemic,” Foot Locker Executive Vice President and Chief Financial Officer Lauren Peters said in the announcement.

In overall results, Foot Locker reported non-GAAP net income of $75 million (71 cents per share) on sales of $2.07 billion. The results exceeded analyst expectations of 57 cents on $2 billion.

The news comes as shares in Foot Locker and footwear giant Nike rallied on Aug. 10 after Foot Locker reported an 18 percent rise in Q2 comparable-store sales, crediting the rises to pent-up demand and government stimulus payments during the pandemic.