Foot Locker Inc. continues to defy the tough retail climate, turning in stronger-than-expected income and sales in the second quarter.
For the period ended Aug. 2, 2014, the retailer reported net income of $92 million, or 63 cents a diluted share. That is a 39 percent increase over the year-ago period, when net income was $66 million, or 44 cents a share. Analysts had predicted 54 cents a share for the most recent quarter.
Net sales for the New York-based retailer totaled $1.64 billion, a 13 percent increase over $1.45 billion in the same quarter of 2013.
“The team at Foot Locker once again achieved record levels of sales and profits in the second quarter, and I am extremely proud of their efforts,” Chairman and CEO Ken Hicks said in a statement. “We delivered excellent financial and operational results through the outstanding execution of our strategic priorities.”
Foot Locker’s comparable-store sales increased 7 percent in the quarter across all categories. Footwear performed well for the firm, with comp-store sales in the high single digits. Both basketball and running were key segments, according to executives, and are expected to grow during the back-to-school season. Comp sales for apparel and accessories slipped slightly to the mid-single digits due to cautious consumer spending and slow sales in the European market.
“We believe these results demonstrate the importance of having a strong and consistent focus across all channels of distribution, since our customer expects a fresh and exciting store environment and engaging and flexible digital experience,” Lauren Peters, Foot Locker’s CFO and EVP, said in a conference call with analysts.