Foot Locker Inc. (FL) - Get Report posted stronger-than-expected second quarter earnings Friday, and reinstated its dividend and share buyback programs, as the athletic retailer looks to move past store closures and slumping demand triggered by the coronavirus pandemic.
Foot Locker said non-GAAP earnings for the three months ending on August 1 were pegged at 71 cents per share, up 7.6% from the same period last year and just ahead of the Street consensus forecast of 69 cents per share. Group revenues, Foot Locker said, rose 17.1% to an analyst-beating $2.077 billion, thanks in part to a surprise 18.6% surge in same-store sales.
Foot Locker also said it would pay a 15 cents per share dividend for the quarter, and evaluate the overall program on a rolling three-month basis.
"I'm proud of the exceptional effort from our team this quarter," said CEO Richard Johnson. "Despite the challenging backdrop of the pandemic, and social unrest, we achieved strong second quarter results, led by our digital business, with a return to growth in both the top and bottom line. As our global fleet of stores reopened, our customers responded with enthusiasm and energy to our assortments and visited our stores with a high intent to purchase."
"As the COVID-19 situation continues to evolve, we believe we have the right strategies and strong leadership in place to strengthen our customer connectivity, deepen our strategic relationships with our vendors, navigate the challenges ahead, and emerge from this period better positioned than ever," he added
Foot Locker shares were marked 2.9% higher in early trading following the earnings release to change hands at $27.94 each, a move that still leaves the stocks with a year-to-date decline of around 25%.