Foot Locker in top form in Q3 profit surges

Foot Locker reported third-quarter profit that surpassed analysts’ expectations.



The retailer’s earnings soared 96.3% in the quarter ended Oct. 29 to $157 million, or $1.17 a share, up from $80 million, or 57 cents, a year ago.



Total sales increased 5.1% to $1.886 billion this year. Same-store sales were up 4.7%.



Foot Locker’s gross margin rate improved to 33.9% of sales from 33.8% a year ago, and the selling, general and administrative expense rate improved 20 basis points to 19.4% of sales.



"The company continued to execute its strategic initiatives and produce excellent financial results in the quarter, with solid, consistent top-line growth, as well as incremental improvements in both gross margin and SG&A rates,” said Lauren Peters, executive VP and CFO, Foot Locker. “Our inventory is fresh and well-positioned as we prepare for the important holiday selling season, and we remain well on track to achieve our annual guidance of a mid-single digit comparable-store sales gain and double-digit earnings per share growth."



As of October 29, 2016, the company operated 3,394 stores in 23 countries in North America, Europe, Australia, and New Zealand.



In addition, 56 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 15 franchised Runners Point stores in Germany.