Foot Locker, Inc. (FL) delivered Friday morning its results from the first quarter that beat Wall Street forecasts, as poor weather blamed by many other retailers for soft sales didn’t seem to impact the global specialty athletic seller.
For the quarter ended May 4, New York-based Foot Locker reported a 3.8 percent increase in total sales to $1.64 billion, from $1.58 billion in the first quarter of 2012. Revenue was negatively impacted by 30 basis points because of fluctuations in foreign currencies. Net income for the quarter was $138 million, or 90 cents per share, compared to $128 million, or 83 cents per share, in the year prior quarter. Adjusted earnings, which exclude a $1 million charge related to the pending acquisition of Runners Point Group announced May 8, were $139 million, or 91 cents per share, versus $128 million, or 83 cents per share, in Q1 2012.
Analysts were expecting adjusted EPS of 88 cents on revenue of $1.63 billion.
Foot Locker operates 3,321 stores in North America, Europe, Australia and New Zealand and collects royalties on 45 franchised stores in the Middle East and South Korea. The stores operate domestically and internationally under the brands Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, Champs Sports and CCS. The company is also testing SIX:02, a new brand launched last November featuring name brands in fitness apparel and athletic footwear for women.
Same-store-sales improved 5.2 percent compared to last year.
Input costs increased modestly from $1.04 billion in the year earlier period to $1.08 billion in the latest quarter. Selling, general and administrative costs rose from $305 million to $315 million.
“I am pleased to report that the thoughtful implementation of our strategic priorities continues to deliver recordand operational results for our shareholders and other stakeholders” said Ken C. Hicks, chairman and chief executive at Foot Locker. Hicks added that it
On May 15, Foot Locker announced a quarterly dividend of 20 cents per share, payable on August 2 to shareholders of record on Friday, July 19.
No shares were repurchased during the quarter as Foot Locker continues negotiations to acquire Runners Point Group, but the company noted that it intends to reinitiate the program during the current quarter.
Shares of FL are up about 12 percent in 2013 through Thursday’s close at $35.68. Early pre-market activity on Friday has shares trading down about 2 percent at $34.90 on minimal volume.
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