Foot Locker profits hit new heights in Q1; sales miss

Foot Locker Inc. saw net income reaching unprecedented levels during the first quarter of fiscal 2016, although sales growth missed Wall Street expectations.



Net income rose 4% to $191 million, from $184 million. Higher pretax income offset a slight increase in income tax expense, resulting in the profit boost. Sales also climbed 4% to $1.99 billion, from $1.92 billion. Same-store sales rose 2.9%.



Total sales fell shy of projected $2 billion sales for the quarter, while same-store sales were well short of the anticipated 4.5% increase. Richard Johnson, chairman of the board and CEO of Foot Locker, focused on the positive in his remarks.



“We produced the most profitable quarter in the company’s long history, an accomplishment of which everyone at Foot Locker should be very proud,” said Johnson. “Our team navigated well through a variety of challenges, not least of which were rapidly-shifting product category preferences by our customers. Never has it been more apparent how important is the work that we have done to build leadership positions across channels, geographies, banners, and product categories.”



During the first quarter, the company opened 32 new stores, remodeled or relocated 55 stores, and closed 19 stores. As of April 30, 2016, Foot Locker operated 3,396 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 49 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 15 franchised Runners Point stores in Germany.