Foot Locker (NYSE: FL) reported its third quarter financial results on Friday morning and narrowly missed analysts’ revenue estimates. Shares fell by 8% during Friday’s pre-market hours.
For the quarter, Foot Locker reported earnings of USD 1.13 per share on revenue of USD 1.932 Billion. Refinitiv analysts expected earnings of USD 1.08 per share on revenue of USD 1.94 Billion.
Third quarter comparable sales increased to 5.7%, beating Refinitiv analysts’ estimates of 4.7%.
During the quarter, revenue increased by 3.9% year-over-year. The Company’s gross margin rate rose by 32.1% from 31.6% a year ago, while selling, general, and administrative expense rate improved to 21.3% of sales from 21.4% a year ago.
“We are pleased with our performance in the quarter, which reflects the success of our strategic focus on building even deeper connections with our customers and further strengthening relationships with our vendors,” said Richard Johnson, Chairman and Chief Executive Officer.
“Across the Company, we are making great strides in implementing our four strategic imperatives, which are designed to ensure we are best positioned to compete in the retail marketplace by inspiring and empowering youth culture while also strengthening our bottom line and driving value for our shareholders.”
On a year-to-date basis, Foot Locker reported net income of USD 357 Million or USD 3.23 per share. On a non-GAAP basis, the Company has so far reported earnings of USD 3.32 per share compared to USD 3.16 per share a year ago.
Year-to-date sales were USD 5.78 Billion, increasing by 2.1% year-over-year from USD 5.66 Billion. Comparable sales increased by 3.8% year-to-date.
Foot Locker’s merchandise inventories were USD 1.30 Billion, 0.1% lower compared to the same quarter a year ago.
At the end of the quarter, Foot Locker opened 11 new stores, remodeled or relocated 34 stores, and closed 25 stores. As of November 2, Foot Locker was operating 3,160 stores in 27 countries.