Boston, MA 05/27/2014 (wallstreetpr) – A chain of athletic retail store operator, Foot Locker, Inc. (NYSE:FL) announced 17.4% rise in profit for the first quarter driven by 14% upside in the top line helped by 7.6% growth in comparable store sales for the same period. The company’s top line as well as bottom line came in above the Street predictions.
1Q Results
The company reported net income of $162 million for the first quarter, up 17.4% from $138 million, while earnings per share advanced 22.2% to $1.11 from $0.90 in the year-ago quarter. On average, Wall Street analysts expected Foot Locker to earn a profit of $1.06 a share.
Sales for the period grew 14% to $1.868 billion from $1.638 billion in the previous year quarter. Analysts estimated the company to generate revenue of $1.79 billion. Excluding the currency impact, sales would have increased 13.4% over the same period last year. Its comparable store sales witnessed 7.6% growth during the same period.
Foot Locker, Inc. (NYSE:FL) disclosed that it had opened 27 additional stores, relocated or remodeled around 49 stores besides shutting the doors of 36 stores. Currently, the athletic retail store operator has 3,464 stores spreading across 23 countries in North America, Australia, Europe, and New Zealand. Aside from these, the company has 47 franchised stores in South Korea and Middle East besides 27 franchised sidestep and runners point stores in Switzerland and Germany.
Other Metrics
The results were also benefited by increased margin, though modestly, from both gross as well as selling, genera, and administrative costs. Foot Locker’s gross margin rose 40 basis points to 34.6% from 34.2%, while selling, general, and administrative costs improved to 19.0% of sales from 19.2% of sales in the year-ago quarter.
Foot Locker, Inc. (NYSE:FL) has bought back 1.53 million shares for about $70 million in the first quarter. Its cash and short-term investments amounted to $1.01 billion whereas the debt was $138 million.
