- Prachi Singh |
Foot Locker has reported third quarter net income of 102 million dollars or 0.81 dollar per share, compared with 157 million dollars or 1.17 dollars per share in the same period of 2016. Third quarter comparable-store sales decreased 3.7 percent and total sales decreased 0.8 percent, to 1,870 million dollars. Excluding the effect of foreign currency fluctuations, total sales decreased 2.3 percent.
“The company’s results in the quarter were broadly in line with our expectations,” said Foot Locker’s Richard Johnson, Chairman and Chief Executive Officer, adding, “Despite the highly promotional environment we still see in the marketplace, the availability of premium product is gradually improving compared to the first half of the year, and we believe we can achieve, and perhaps modestly exceed, the top- and bottom-line guidance we gave for the fourth quarter back in August.”
Third quarter highlights of Foot Locker results
The company’s gross margin rate decreased to 31 percent of sales from 33.9 percent a year ago. The company said, third quarter results included a 13 million dollars pre-tax charge related to reducing and reorganizing corporate and division staff. Excluding this charge, which reduced after-tax earnings by 6 cents per share, non-GAAP earnings were 0.87 dollar per share compared to 1.13 dollars per share in the comparable period of 2016.
Net income for the Company’s first nine months of the year decreased to 333 million dollars or 2.55 dollars per share on a GAAP basis, compared to net income of 475 million dollars or 3.50 dollars per share, for the corresponding period in 2016. Year-to-date sales were 5,572 million dollars, a decrease of 1.4 percent, while comparable store sales decreased 2.9 percent. Total year-to-date sales, excluding the effect of foreign currency fluctuations, decreased by 1.5 percent.
During the third quarter, the company opened 12 new stores, remodelled or relocated 41 stores, and closed 22 stores. As of October 28, 2017, the company operated 3,349 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 83 franchised Foot Locker stores were operating in the Middle East, as well as 14 franchised Runners Point stores in Germany.