Foot Locker crushed quarterly earnings estimates

Foot Locker crushed quarterly earnings estimates

One of the leading athletic footwear and apparel retailers single-handedly beat Q2 2021 earnings expectations

Foot Locker reported revenues of $2.28 billion, topping the $2.09 billion expected and marking a 9.5% increase from a year earlier. At the same time, the company earned $2.21 per share, more than double than expected.

While analysts were looking for a 0.2% decline in comparable-store sales, Foot Locker revealed a 6.9% jump. The surges resulted from consumer spending on athletic footwear and workout apparel during the COVID-19 pandemic.

Earlier this month, the retailer announced it would buy two smaller chains, for $1.1 billion cash, in an attempt to extend its Asian footprint. Foot Looker has been looking for ways to grow outside shopping malls, where shopper visits have been suppressed during the pandemic. Moreover, Andrew Page, Foot Locker CFO, said that the company remains “cautiously optimistic” regarding the outlook for the second half of the year.

After the news hit the wires, Foot Locker share price went up 8%. Since the beginning of the week, Foot Locker shares gained 35%, reaching a market cap of $5.63 billion. For the same period, USA500 added 17.3%.

Sources: cnbc.com, marketwatch.com

The information presented herein is prepared by ae.capex.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.