Foot Locker (FL) revealed stronger-than-expected first-quarter earnings and improved sales at stores open longer than a year on Friday, however its sales slumped ahead of the market’s open.
The New York-based sports footwear and apparel retailer reported net income of $138 million, or 90 cents a share, compared with a year-earlier profit of $128 million, or 83 cents.
Excluding $1 million in transaction costs related to the pending buy of Runners Point Group, Foot Locker earned 91 cents a share, topping average analyst estimates in a Thomson Reuters poll by three pennies.
Foot Locker agreed to buy German athletic chain Runners Point earlier this month for $94 million, a move it hopes will greatly expand its presence in Europe.
The U.S. retailer's revenue for the three months ended May 4 increased 3.8% to $1.64 billion compared with sales of $1.58 billion a year ago, matching the Street’s view. Same-store sales, a key growth metric for retailers that measures sales at stores open longer than a year, edged up 5.2%.
“I am pleased to report that the thoughtful implementation of our strategic priorities continues to deliver record financial and operational results for our shareholders and other stakeholders" Foot Locker CEO Ken Hicks said in a statement.
While the company said it did not buy back any of its shares as part of an earlier approved repurchase program during the quarter because of the ongoing negotiations related to the Runners Point deal, Foot Locker plans to restart it in the second quarter.
Shares of Foot Locker slumped more than 2% in pre-market trade to $34.90.