Foot Locker sees ‘strong customer response’ as Q2 comp-sales rise
Foot Locker is feeling upbeat about its second quarter.
In a sales and earnings update for the second quarter (ended August 1), the athletic footwear retailer said that same-store sales increased approximately 18%. The Street had expected sales to plummet 23.6%.
Foot Locker expects net earnings per share of $0.38 to $0.42, down from $0.55 in the year-ago period. Excluding non-recurring items, Foot Locker expects to report adjusted EPS of $0.66 cents to $0.70 cents. Analysts had expected a loss of $0.60 per share.
"As we continued to reopen stores throughout the quarter, we saw a strong customer response to our assortments, which we believe was aided by pent-up demand and the effect of fiscal stimulus,” said Richard Johnson, chairman and CEO. “This fueled our in-store sales and also drove continued momentum across our digital channels. While these undoubtedly remain challenging times, we are nonetheless pleased by the health of our category, our deep connections with our customers, and the strength of our vendor relationships."
Citing the the uncertainty surrounding the evolving COVID-19 pandemic and its potential impact on the back-to-school season, team sports participation, and additional government stimulus packages, Foot Locker said it does not plan to provide a full-year 2020 outlook at this time.
Foot Locker, whose brands include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction, Runners Point and Sidestep, operates approximately 3,100 retail stores in 27 countries across North America, Europe, Asia, Australia, and New Zealand, as well as websites and mobile apps.