Boston, MA 10/01/2013 (wallstreetpr) – On September 11, Foot Locker, Inc. (NYSE:FL) announced its third quarter results which ended on August 3. Some of the key highlights from the quarterly report are discussed below:
During 2Q13 (in July) FL completed the formalities related to 100% acquisition of Runners Point Warenhandelsgesellschaft mbH. It operated 194 sports stores across three European countries of Germany, Austria and Netherlands. This was a boutique athletic sports store with a big online presence. It is based out of Recklinghausen in Germany. The acquisition was valued at $87 million in cash.
In 2Q, FL has increased its store numbers by 4.7% in comparison to same quarter last year. As of August 3, it was operating 3495 stores. It’s overall sales was up 6.3% in comparison to 2Q12. Its net income for 2Q jumped up by 13% to $106 million in comparison to $93 million that was posted in 1Q12.
The markets were not too enthused with the results. The stock has charted a 3.3% increase in its value since September 13 when the 2Q results were announced. As of close of business on September 30, the share price had settled in at $33.96 per share and was trading 10% lower than its 52 week high valuation. It has a market capitalization of $5.7 billion.
Foot Locker business is organized into two key segments. These are “Athletic Stores division and Direct-to-Customers division”. The Athletic Stores segment is a globally recognised brand with over 9 different brands and segments aligned to cater to the needs of men, women and children.
The Direct-to-Customers segment reaches its customers through business affiliates, Internet websites, mobile devices, and e-catalogs. Eastbay, one of the affiliates, is among the largest direct marketers in the United States. The Direct-to-Customers division operates 12 e commerce websites for the company.
