Shares of Foot Locker (NYSE:FL) rose on Wednesday after the company posted surprise earnings and sales beats and said it saw strong results over Thanksgiving weekend.
The sneaker and sportswear retailer narrowed its full-year forecast, reflecting slightly better sales trends. It said it now expects sales to drop by 8% to 8.5% for the year, compared with a previously issued forecast of an 8% to 9% decrease. It projects a same-store sales decline of 8.5% to 9%, compared with its previous guidance of a 9% to 10% drop.
Yet reports are that Foot Locker lowered the high end of its adjusted earnings guidance, dropping the range to $1.30 to $1.40 per share, down from the previous $1.30 to $1.50 per share.
Earnings per share proved to be 30 cents adjusted vs. 21 cents expected.
Revenue was $1.99 billion vs. $1.96 billion expected.
In the fiscal third quarter, Foot Locker reported net income of $28 million, or 30 cents per share, compared with $96 million, or $1.01 in the year-ago period.
Foot Locker’s same-store sales fell 8% year over year, which the company said reflected “ongoing consumer softness,” a change in its mix of vendors and a 3% negative impact as it closes some Champs stores. Even so, that was slightly better than the 9.7% drop that analysts expected, according to FactSet.
FL shares had their running shoes on, gaining $4.72, or 19.8%, to $28.56.
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