Foot Locker, Inc. (NYSE: FL) stock rose over 15.9% on May 25th, 2018 (as of 12:59 PM GMT-4; Source: Google finance) on the back of better than expected performance. The group’s premium product continues to improve, boosted by a breadth and depth in the most sought after styles from their key vendors. The group expects a positive comparable-store sales growth throughout the year. First quarter sales of 2018 rose 1.2 percent, to $2,025 million this year, against the sales of $2,001 million for the corresponding prior-year period.
The group reported a quarterly cash dividend of $0.345 per share, which is payable on August 3, 2018 to shareholders of record on July 20, 2018. The group’s merchandise inventories fell 5.4% yoy too $1,210 million as of May 5, 2018. The group is helping to clear slow moving product in a promotional environment, offering flexibility to flow in fresh and exciting product. Their cash reached $1,029 million, while the debt on its balance sheet was $125 million. Foot Locker spent $112 million to buy 2.6 million shares during the quarter and paid a quarterly dividend of $0.345 per share, spending $41 million.
They opened 11 new stores, remodeled or relocated 43 stores, and closed 37 stores. As of May 5, 2018, the Company operated 3,284 stores in 24 countries in North America, Europe, Australia, and New Zealand. Moreover 105 franchised Foot Locker stores were operating in the Middle East, as well as 11 franchised Runners Point stores in Germany
Net income fell to $165 million, or $1.38 per share, from net income of $180 million, or $1.36 per share in pcp. This Performance comprises an incremental $12 million charge related to the Company’s pension litigation.
Comparable-store sales fell 2.8 percent during the quarter. Excluding the effect of foreign exchange rate fluctuations, total sales for the first quarter decreased 1.5 percent. Gross margin rate fell to 32.9% against 34% pcp.