Footlocker (NYSE:FL) reported a stronger-than-expected 61% increase in third-quarter earnings and widely topped revenue expectations on Friday, as sales of athletic apparel continued to ramp up.
New materials used in athletic gear and recent product launches by leading sports apparel manufacturers like Nike (NYSE:NKE) have helped offset Footlocker's exposure to troubled areas like Europe by given it a boost in domestic stores.
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"Our team put together another outstanding quarter, delivering a double digit sales gain and controlling expenses to drive our bottom line earnings to new heights," Footlocker CEO Ken Hicks said in a statement.
The New York-based sports apparel retailer posted net income of $106 million, or 69 cents a share, compared with a year-earlier profit of $66 million, or 43 cents.
Excluding a one-time tax benefit, Footlocker said it earned 63 cents, above average analyst estimates of 54 cents in a Thomson Reuters poll.
Revenue for the three months ended Oct. 27 climbed 9.3% to $1.52 billion from $1.39 billion a year ago, topping the Street’s view of $1.47 billion. The retailer’s same-store sales, which measures sales at stores open longer than a year, increased 10.2%.
“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," Hicks.