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Sixfold Profit Increase For Foot Locker

Foot Locker Inc. handily topped estimates in the second quarter.
 
For the period ended Jul. 30, 2011, the New York-based specialty athletic retailer earned $37 million, or 24 cents a share, six times more than the $6 million, or 4 cents a share, it earned in the same period a year ago.
 
Analysts were looking for earnings of 11 cents a share, as polled by Yahoo Finance.
 
Revenue for the quarter increased 16 percent to $1.3 billion, thanks to an 11.8 percent gain in comparable-store sales.
 
“Our associates worldwide are doing an excellent job executing the initiatives of our strategic plan,” said Ken Hicks, chairman and CEO of Foot Locker, in a statement. “I am also pleased to be reporting our sixth consecutive quarter of sales and profit growth, versus the comparable prior-year periods.”
 
Foot Locker’s merchandise inventory at the end of the second quarter was $1.3 billion, or 4 percent higher than the year before.
 
The company ended the period with cash and cash equivalents totaling $681 million, compared with $519 million last year, and $136 million in debt.

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