Foot Locker, Inc. (NYSE: FL) stock enhanced over 14.6% on 21st November, 2018 pre market session.
Net income for the Company’s third quarter ended November 3, 2018 was $130 million compared to net income of $102 million in the same period of fiscal 2017. The company has produced solid gains across both channels with comp sales at the stores up 2.4% and digital up 5.9%. This once again demonstrates the importance of connecting with our customers and serving them however they choose to shop. As a percent of total sales, DTC was 14.5% for the quarter, up from 13.8% last year. The story with traffic this quarter was also one of sequential improvements, led by a modest increase at our U.S. store banners. Traffic at the international banners was down low-single digits. While still a challenge, it was an improvement over the prior period trends with notable progress at Foot Locker Europe stores. Average selling prices continue to move higher both in footwear and apparel. Unit sales were also up in footwear while apparel units were down at few ticks
Further, Footwear turned positive, posting its first comp gain in six quarters with a low single-digit increase, while the strong trend in apparel continued with a high single-digit comp gain fueled by a branded assortment. Accessories such as hats and socks comped down double-digits. Within footwear, our women’s business was the strongest performer, with comparable sales up double-digits. Men’s was up low single-digit and kids’ was up slightly. Men’s running comps were up double digits. And while basketball was down mid-single digits, the trend did get better from the second quarter. Meanwhile, casual including styles from Fila and Vans and seasonal assortments such as boots had another solid quarter posting a mid-single digit comp gain.
Moreover, FL saw strong performances across North America and international markets. In North America, Foot Locker US, Champs Sports and Eastbay led the way, each up mid-single digits. SIX:02 and Foot Locker Canada each have low single-digit gains. Kids’ Foot Locker was down slightly while Footaction was down mid-single digits primarily due to the Jordan reset.
FL in the third quarter of FY 18 has reported the adjusted earnings per share of 95 cents, beating the analysts’ estimates for the adjusted earnings per share of 92 cents. The company had reported the adjusted revenue growth of 35.9 percent to $1.86 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue of $1.85 billion.