Foot Locker Results Top Views on Sales Strength

By Chelsey Dulaney 

Foot Locker Inc. on Friday posted a better-than-expected 29% jump in profit in its second quarter amid broad-based sales growth.

Foot Locker has posted strong results recently amid growth in categories such as basketball gear and running styles.

For Foot Locker, workout clothes, sports jerseys and training gear had been used mainly as a tool to drive customers to its stores to purchase shoes, which make up about three-quarters of the retailer's sales.

But as the U.S. sportswear industry shifts toward more fashion- and lifestyle-focused athletic looks and away from technical sports products, Foot Locker has been trying to do more with smaller apparel offerings compared with department stores such as Macy's Inc.

In the latest quarter, sales excluding newly opened and closed locations jumped 9.6%.

"We continued to achieve broad-based and consistent strength across geographies, banners, channels, and categories," said Chief Executive Richard Johnson in a news release.

Overall, for the period ended Aug. 1, Foot Locker posted earnings of $119 million, or 84 cents a share, up from $92 million, or 63 cents a share, a year earlier.

Sales grew 3.3% to $1.7 billion, or 9.9% excluding currency impacts.

Analysts polled by Thomson Reuters had expected earnings of 69 cents a share and revenue of $1.66 billion.

Gross margin improved to 32.6% from 32% a year earlier, while inventory levels grew 3.3% excluding currency fluctuations.

Write to Chelsey Dulaney at [e-mail]

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(END) Dow Jones Newswires

August 21, 2015 07:36 ET (11:36 GMT)

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