Foot Locker (FL) - Get Free Report shares surged the most in more than 16 months Friday after the sports apparel retailer posted much better-than-expected second quarter earnings, adding to evidence of a brick-and-mortar retail revival in the wake of the coronavirus pandemic.
Foot Locker said adjusted earnings for the three months ending on August 1 came in at $2.21 per share, up 211% from the same period last year and crushing the Street consensus forecast of $1.01 per share. Group revenues, Footlocker said, rose 9.4% to $2.275 billion, again beating analysts' estimates of a $2.09 billion tally, as same-store sales soared 80.3% from last year.
Foot Locker also posted a surprise 5.9% gain in same-store sales, blasting the Refinitiv forecast of just 0.2%, and noted it was 'cautiously optimistic' about the outlook for the back-half of 2021.
"Our strong performance this quarter reflects the health of our category, the deep engagement we have with our customers, and the strategic nature of our relationships with our vendor partners," said CEO Richard Johnson. "This quarter reflects strong results in our women's and kids' footwear business along with broad demand for our apparel and accessories offerings, which combined with more limited promotional activity, led to the outstanding top and bottom line results."
Foot Locker shares were marked 11.75% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $60.80 each.
Retail bellwether Macy's (M) - Get Free Report lifted it full-year profit guidance Thursday, sending its shares up nearly 20%, after it smashed Street forecasts with an impressive second quarter earnings report.
Macy's smaller rival, Kohl's Corp. (KSS) - Get Free Report, also blasted Street forecasts with its second quarter earnings, and boosted its full-year profit forecast to between $5.80 to $6.10 per share.
The Commerce Department's July report on U.S. retail sales showed a bigger-than-expected 1.1% decline from the previous month, but also noted that clothing and clothing accessories sales were up 43.4% from last year to around $17.779 billion.