Foot Locker Beats Estimates, Shares Jump
Foot Locker Inc. (NYSE: FL) reported third-quarter 2012 adjusted diluted earnings per share (EPS) of $0.63 and $1.52 billion in revenues before markets opened this morning. In the same period a year ago, the footwear retailer reported EPS of $0.43 on revenue of $1.39 billion. These results also compare to the Thomson Reuters consensus estimates for EPS of $0.54 and $1.47 billion in revenue.
On a GAAP basis, Foot Locker posted EPS of $0.69 compared with $0.43 a year ago. The company's third-quarter and year-to-date results include a tax benefit of $0.06 per share.
The company's CEO said:
The ongoing focus of all of our associates on the strategies and initiatives we updated at the beginning of the year continues to enhance the productivity of our key assets. Inventory turns are improving; sales per square foot are increasing; and by investing in our people and giving them the best tools to succeed with the customer, our associates are becoming even more productive, too.
The company did not provide any guidance, but the current consensus estimate for full-year EPS is $2.46 on revenues of $6.07 billion.
Foot Locker said it has opened 70 new stores in the first nine months of this fiscal year, remodeled or relocated another 159, and closed 72 stores. Foot Locker operates more than 3,300 stores worldwide. Total square footage of the stores is down, as is the total number of operated stores. That probably accounts for the higher-than-expected earnings.
At the end of the second quarter, the company's shares hit a new 52-week high. Today's report is not likely to push the stock to new heights again.
Shares are up about 5% in premarket trading, at $33.40 in a 52-week range of $21.03 to $37.65. Thomson Reuters had a consensus analyst price target of around $40.50 before today's results were announced.
Filed under: 24/7 Wall St. Wire, Consumer Goods, Earnings, Retail Tagged: FL