Foot Locker Profit And Sales Rise Above Expectations

By Tomi Kilgore Markets MarketWatch Pulse

Athletics shoe retailer Foot Locker Inc. reported Friday a fiscal fourth-quarter profit that rose to $189 million, or $1.42 a share, from $158 million, or $1.14 a share, in the same period a year ago. Excluding non-recurring items, such as regulatory changes in the calculation of taxes, adjusted earnings per share for the quarter to Jan. 28 were $1.37, above the FactSet consensus of $1.32. Revenue increased to $2.11 billion from $2.01 billion, matching the FactSet consensus of $2.11 billion. Same-store sales increased 5.0%, beating the FactSet consensus of 4.5% growth. "Due in part to the change in the cadence of income tax refund check distribution, we are facing a challenging retail sales environment as we enter 2017; however, we believe the strategic initiatives we have in place, coupled with our strong vendor relationships, will enable us to deliver another year of record performance," said Chief Executive Richard Johnson. The stock, which was indicated about 1.8% higher in premarket trade, has shed 7.6% over the past three months, while the SPDR S&P Retail ETF has lost 8% and the S&P 500 has gained 7.2%.

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