Foot Locker achieves 25th consecutive quarter of profit increases
Foot Locker, Inc. reported the financial results for its first quarter ended April 30, 2016. This quarter marked the 25th consecutive quarter of sales and profit increases.
Net income increased to $191 million from $184 million in first quarter 2015. Earnings per share was $1.39, a 7.8% increase from $1.29 in the previous year, first quarter comparable-store sales increased 2.9% and total first quarter sales increased 3.7% to $1,987 million from $1,916 million.
The company’s gross margin rate remained stable year-over-year at 35% of sales, while the SG&A expense rate increased slightly to 18.2% of sales due to $4 million of one-time costs to relocate the company’s New York City headquarters.
"We produced the most profitable quarter in the Company's long history, an accomplishment of which everyone at Foot Locker, Inc. should be very proud," said Richard Johnson, Chairman of the Board and Chief Executive Officer. "Our team navigated well through a variety of challenges, not least of which were rapidly-shifting product category preferences by our customers, to achieve our 25th consecutive quarter of meaningful sales and profit increases over the prior year. Never has it been more apparent how important is the work that we have done to build leadership positions across channels, geographies, banners, and product categories."
In addition, Foot Locker’s inventories were $1,260 million, 2.1% higher than at the end of first quarter 2015. The company’s cash totaled $1,062 million and the debt on its balance sheet was $129 million. Foot Locker also spent $88 million to repurchase 1.37 million shares.
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