Foot Locker defies Wall St with profit during Covid quarter

Shares surge 9.6% as retailer says sales and profit rose in three months to August 1st

Foot Locker soared after the sportswear company said it expects to report a profit and rising revenue for the second quarter. Photograph: Nina Westervelt/Bloomberg

Foot Locker soared after the sportswear company said it expects to report a profit and rising revenue for the second quarter. Photograph: Nina Westervelt/Bloomberg

 

Foot Locker soared after the sportswear company said it expects to report a profit and rising revenue for the second quarter, defying Wall Street’s expectations amid a tumultuous time for the clothing industry.

Same-store sales increased about 18 per cent for the three months to August 1st, the New York-based company said Monday in a statement discussing preliminary results for the quarter. Diluted earnings will likely be 38 US cents to 42 US cents a share. Analysts had expected an adjusted loss of 61 cents a share, along with a decline in total revenue.

Foot Locker jumped as much as 9.6 per cent in New York trading Monday.

The performance was “aided by pent-up demand and the effect of fiscal stimulus,” chief executive Richard Johnson said in the statement. “While these undoubtedly remain challenging times, we are nonetheless pleased by the health of our category, our deep connections with our customers and the strength of our vendor relationships.”

Foot Locker will report full quarterly results before markets open on August 21st. – Bloomberg