Foot Locker Inc. (FL) - Get Foot Locker Inc. Report reported earnings Friday, surprising investors by beating analysts' estimates with stronger-than-expected earnings. The footwear retailer is hoping to move past store closures and revive demand that had weakened during the pandemic.
Foot Locker reported second quarter non-GAAP net income of $75 million, or $0.71 per share. Second quarter comparable-store sales increased 18.6%. The Company's gross margin rate decreased to 25.9% from 30.1% a year ago.
"I'm proud of the exceptional effort from our team this quarter," said Foot Locker President and Chief Executive Officer. "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 are up 2.6% Friday morning.
The retailer has approximately 3,100 stores in 27 countries. Its corporate headquarters are in New York. In August, the company opened its largest Foot Locker store in Singapore. It's a five-story space with retail over three-levels.