Finance & Capital Management

Higher demand for running and basketball shoes is translating into more record sales and profits for Foot Locker, which reported impressive third quarter results on Friday.

The New York-based specialty athletic retailer posted a same store sales increase of 8.7% in its third quarter ended Oct. 31.

It appears that Abercrombie & Fitch Co. is starting to making progress in its turnaround efforts.

Helped by a less promotional stance and cost cuts, the teen retailer saw its profit more than double in its third quarter as it beat expectations. But similar to many other retailers, Abercrombie struck a cautious note and said it expects fourth-quarter same-store sales to be about flat.

Gordmans Stores ended its same-store sales dry spell and successfully launched an e-commerce site in the third quarter, leaving CEO Andy Hall upbeat about the company’s prospects.

Gordmans, operator of 102 off price department stores, said same-store sales increased 0.8% and total sales increased 4.9% to $153.9 million in the third quarter ended Oct. 31. The company also noted that gross margin improved 50 basis points to 44.4% due to reduced markdown activity.

Oak Brook, Illinois-based Ace Hardware Corporation reported third quarter 2015 revenues of $1.3 billion, an increase of $148.5 million or 13.2% from third quarter 2014. Net income was $54.2 million for third quarter 2015, an increase of $16.9 million or 45.3% from last year.

"We are delighted to announce the best third quarter sales and profit in Ace’s history," said John Venhuizen, President and CEO, Ace Hardware Corp. "The credit falls squarely on the shoulders of our world-class retailers, associates and corporate teammates.”

Destination XL says it is on pace to open its 175th store next year as the big and tall retailer also posted a jump in same-store sales and filled a newly created position with a veteran from Genesco.

For the third quarter ended Oct. 31, same store sales at the company increased 4.3%. Destination XL also narrowed its loss to $5.47 million, or 11 cents a share. In the previous year period, the company reported a loss of $6.28 million, or 13 cents a share.

Leading mall-based denim retailer The Buckle said its third quarter profits fell after strengthening online sales couldn’t overcome in store weakness.

Profits at the operator of 469 stores, billed as a denim destination, declined to $35.9 million, or 74 cents a share, during the third quarter ended Oct. 31, compared to $40.6 million, or 84 cents a share, during the third quarter the prior year. The profit decline was expected as The Buckle had previously reported that same-store sales had declined 5.2% and total sales had declined 4.1% to $280.2 million.

More robust omnichannel capabilities have Best Buy CEO Hubert Joly confident about his company’s ability to execute during the holidays, but his views on overall demand for consumer electronics are another matter.

Amid growing sales and surging profits, specialty retailer Cato is finding its expansion efforts being held back by the availability of suitable shopping centers.