Sportswear and footwear retailer Foot Locker (FL) delivered better-than-expected second-quarter results. Revenue and earnings topped consensus estimates as the company benefited from improving fundamentals in the industry. Shares jumped 7.26% to close at $58.34 on August 20.
Net income came in at $430 million, an improvement from $45 million delivered in the same quarter last year. Earnings per share landed at $2.21, up 200% year-over-year, surpassing consensus estimates of $1 a share. (See Foot Locker stock charts on TipRanks)
Total sales increased 9.5% year-over-year to $2.28 billion, beating consensus estimates of $2.08 billion. Comparable store sales were also up 6.9% compared to the same quarter last year. Q2 results reflected strong performances in the women and kids footwear segments. Foot Locker also benefited from strong demand in its apparel and accessories offerings.
Foot Locker exited the second quarter with $1.08 billion in merchandise inventories, a 9.5% decline from the same quarter last year. Cash and cash equivalent totaled $1.85 billion, while debt stood at $112 million. The company spent $36 million on strengthening its store fleet and digital capabilities as well as its supply chain.
During the quarter, the company spent $8 million on buying back 125,000 shares and returned $29 million to investors through repurchases and dividends.
"The 50% increase to our quarterly dividend rate that we announced earlier this week reflects our Board's confidence in our business and financial strength,” said Chairman and Chief Executive Officer, Richard Johnson.
Following the Q2 results, Barclays analyst Adrienne Yih reiterated a Buy rating on the stock with an $87 price target, implying 49.13% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 9 Buys and 5 Holds. The average Foot Locker price target of $73.50 implies 25.99% upside potential to current levels.
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The post Foot Locker Beats Q2 Consensus Estimates; Shares Pop 7% appeared first on TipRanks Financial Blog.
By: Payal GuptaTitle: Foot Locker Beats Q2 Consensus Estimates; Shares Pop 7%Sourced From: blog.tipranks.com/foot-locker-beats-q2-consensus-estimates-shares-pop-7/Published Date: Mon, 23 Aug 2021 07:39:11 +0000