Foot Locker (FL) Stock Surges on Earnings Beat, Jim Cramer Weighs In
NEW YORK (TheStreet) -- Foot Locker (FL) - Get Report stock is gaining 4.99% to $64.60 in pre-market trading on Friday after the company reported financial results that exceeded expectations for the fiscal 2015 third quarter.
The athletic footwear and apparel retailer posted earnings of $1 per share on $1.79 billion in revenue for the quarter ended October 31.
Analysts surveyed by Thomson Reuters had estimated earnings of 95 cents per share on revenue of $1.78 billion.
"This quarter, in fact this entire year, has offered a perfect illustration of how building diversity into our business has helped us sustain record-setting growth over multiple quarters and years," CEO Richard Johnson said in a statement.
Comparable store sales increased 8.7% with growth across multiple segments.
TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, has this to say about Foot Locker's quarterly results: "When you carry Nikes (NKE) you win. Pretty simple formula."
Inventories rose 0.9% year-over-year, but the company is entering the holiday season with an assortment of new merchandise that can be sold at full-price, CFO Lauren Peters noted.
Separately, TheStreet Ratings team rates FOOT LOCKER INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate FOOT LOCKER INC (FL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: FL
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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.