Foot Locker profits jump as sales continue to rise
today Aug 25, 2018
New York-based sportswear retailer Foot Locker, Inc. announced net income of $88 million for the second quarter ended August 4, 2018 on Friday, a significant rise compared to the $51 million reported in Q2 2017, with rises in net sales and comps contributing to the uptick.
Net sales for the period totaled $1.78 billion, compared to $1.70 billion in the second quarter of 2017, an increase of 4.8%, or 3.9% in constant currencies, while comparable sales increased 0.5%.
The positive results follow on from the expectation-topping sales of $2.03 billion reported by Foot Locker in Q1, a period which nonetheless saw the company’s income drop from $180 million in the prior year period to $165 million.
The company also reported on Thursday net income for the first half of fiscal 2018 of $253 million, up from $231 million in the prior year period. Sales for the sixth-month period increased 2.8% from $3.70 million to $3.81 million, with comps rising 1.2%.
“Our performance reflects the work we are doing on several fronts to position the Company to succeed in a rapidly evolving retail environment,” stated Foot Locker Chairman and CEO Richard Johnson in a release. “We remain optimistic that our improving product flow and depth in premium styles positions us to deliver stronger comparable sales growth in the second half of 2018.”
The company opened two Power Stores in Liverpool and London this summer, the first of its new immersive, community-focused retail destinations, and has plans to bring the concept to the USA before the end of the year. A further five Power Stores are set to spring up in Asia, with the first Hong Kong location slated to open its doors in Q3 2018.
Aside from aiming to offer customers a more experiential retail concept, the stores reflect a more local approach which the company also hopes will permit it to be more flexible with its store locations.
During the second quarter, Foot Locker opened a total of 13 new stores and closed 33. As of August 4, 2018, the company operates 3,276 stores in 24 countries around the globe, with a further 107 franchised Foot Locker locations being run in the Middle East, as well as 10 Runners Point franchise locations in Germany.
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