Foot Locker’s stock jumps after big profit beat, surprise same-store sales increase

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Shares of Foot Locker Inc. ran up 5.3% toward a one-year high in premarket trading Friday, after the athletic shoe and accessories seller reported a surprise increase in same-store sales and profit that rose well above expectations. Net income rose to $265 million, or $2.52 a share, from $125 million, or $1.16 a share, in the year-ago period. Excluding non-recurring items, such as a gain from a higher valuation for a minority investment, adjusted earnings per share grew to $1.21 from $1.13, beating the FactSet consensus of 63 cents. Sales increased 9.0% to $2.11 billion, above the FactSet consensus of $1.95 billion, while same-store sales rose 7.7% to beat forecasts for a decline of 0.2%. “Although the back-to-school selling season kicked in later than usual due to COVID-19-related delays, momentum built as the quarter progressed, and we were pleased with our customers’ continued strong engagement across our family of brands,” said Chief Executive Richard Johnson. The company did not provide financial guidance, given continued uncertainties created by the COVID-19 pandemic. The stock has soared 52.0% over the past three months, while the SPDR S&P Retail ETF has climbed 11.3% and the S&P 500 has gained 5.8%.
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