Foot Locker’s same-store sales come in 7.7% higher in fiscal Q3

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 20, 2020
  • Foot Locker’s same-store sales come in 7.7% higher in the fiscal third quarter.
  • The sportswear & footwear retailer reports £199.61 million of net income in Q3.
  • Foot Locker refrains from giving future guidance due to COVID-19 uncertainties.

Foot Locker Inc. (NYSE: FL) said on Friday that its profit and comparable-store sales in the fiscal third quarter blew past Wall Street estimates. The company reported £199.61 million of net income in the recent quarter that translates to £1.90 per share. In the comparable quarter of last year, its net income was capped at a much lower £94.15 million or 87 pence per share.

Foot Locker is currently 5% down on the intraday chart. The stock has a per-share price of £29.64 that represents more than 100% recovery since its year to date low in March due to the COVID-19 disruptions. Foot Locker shares, that you can learn to buy online here, were trading at £28.69 at the start of the year.

Foot Locker’s Q3 financial results versus analysts’ estimates

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Adjusted for one-time items, the New York-based company earned 91 pence per share in Q3 versus the year-ago figure of 85 pence per share. According to FactSet, experts had forecast the company to print a lower 47.45 pence of earnings per share in the recent quarter.

In terms of sales, the sportswear and footwear retailer saw a 9.0% year over year decline in the third quarter to £1.59 billion. FactSet Consensus for revenue in Q3 stood at a lower £1.47 billion. The American company launched “12 days of greatness” holiday campaign earlier this week.

Foot Locker’s same-store sales in the recent quarter jumped 7.7% on an annualised basis versus a 0.2% decline expected. In the prior quarter (Q2), it’s comparable-store sales had jumped 18.6% as per the report published in August.

Foot Locker refrains from giving future guidance on Friday

CEO Richard Johnson commented on the earnings report on Friday and said:

“Although the back to school selling season kicked in later than usual due to COVID-19 related delays, momentum built as the quarter progressed, and we were pleased with our customers’ continued strong engagement across our family of brands.”

Foot Locker refrained from giving guidance for the future due to the COVID-19 uncertainties. The Coronavirus pandemic has so far infected more than 12 million people in the United States and caused a little over a quarter million deaths.

Foot Locker performed fairly downbeat in the stock market last year with an annual decline of roughly 30%. At the time of writing, it is valued at £3.11 billion and has a price to earnings ratio of 21.80.

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