Foot Locker profits run even higher

Foot Locker Inc. continues to cash in on the trend toward wearing fashionable active apparel, as the company reported impressive sales and earnings growth in its latest quarter.

For the second quarter ended Aug. 1, the retailer posted net income of $119 million, or 84 cents per share, compared with net income of $92 million, or 63 cents per share, last year, a 33% increase. Same store sales increased 9.6%. Total sales increased 3.3%, to $1,695 million this year, compared with sales of $1,641 million for the corresponding prior-year period.

"We extended the momentum with which we started 2015, generating outstanding quarterly sales and profits in the second quarter," said Richard Johnson, president and CEO. "We continued to achieve broad-based and consistent strength across geographies, banners, channels, and categories. While we work every day to build on our position as a leading global retailer in the athletic industry and produce consistent improvement in our operational and financial performance, I want to pause to acknowledge the incredible team we have at our company and thank each of them for their contributions in producing these excellent first half results."

The company's gross margin rate improved to 32.6 percent of sales from 32% percent a year ago, while the selling, general, and administrative expense rate improved to 19.5%of sales from 20.9%.

"With the strong top line gain, the team at Foot Locker was able to flow the incremental sales dollars through to the bottom line at a very healthy rate, leading to good progress on all of our long-term goals," said Lauren Peters, EVP and CFO. "Meanwhile, we continue to invest capital carefully in future growth opportunities, while also maintaining a meaningful return of cash to our shareholders through our dividend and share repurchase programs."

During the second quarter, the company opened 21 new stores, remodeled or relocated 65 stores, and closed 21 stores. As of Aug. 1, the company operated 3,419 stores in 23 countries in North America, Europe, Australia, and New Zealand.