Aug 21, 2008
Foot Locker Q2 profit beats Street; shares jump
Aug 21, 2008
Aug 21 (Reuters) - Athletic-shoe retailer Foot Locker Inc posted a second-quarter profit, soundly beating market estimates, as fewer discounts boosted margins, sending its shares up as much as 11 percent.
The company reported net income of $18.0 million, or 11 cents per share, compared with a net loss of $18.0 million, or 12 cents per share, a year earlier.
Net sales at the company, whose rivals include Finish Line Inc , rose about 2 percent to $1.30 billion for the period ended August 2.
Analysts on average expected the company, which operates the Lady Foot Locker, Kids Foot Locker and Champs Sports retail chains, to earn 2 cents a share, before special items, on revenue of $1.27 billion, according to Reuters Estimates.
The company's gross margin rate rose 420 basis points from a year earlier.
Sales at stores open at least a year, or same-store sales, fell about 1 percent in the quarter.
Foot Locker, which operates more than 3,700 stores in 21 countries, raised the lower end of its full-year earnings forecast by 5 cents. Excluding a first-quarter impairment charge, the company expects earnings of 70 cents to 85 cents a share.
Analysts expect earnings of 72 cents a share, before items.
Shares of New York-based Foot Locker were up $1.12 in after-hours trading. They closed at $15.28 Thursday on the New York Stock Exchange. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Pratish Narayanan)
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