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Foot Locker beats Q2 earnings estimates, revenue up 17 percent

By Huw Hughes

Aug. 21, 2020


Foot Locker beat earnings estimates Friday reporting second-quarter revenue of 2.08 billion dollars, up 17 percent from the prior-year period.

The New York-based footwear retailer said those figures were boosted by comparable-store sales which were up 18.6 percent in the quarter.

The company reported profit of 45 million dollars for the period, 25 percent lower than the prior-year period but still beating analysts’ estimates.

The figures include pre-tax charges of around 19 million dollars related to the wind down of the Runners Point banner and the Eastbay restructuring, as well as around 18 million dollars for “costs incurred in connection with the recent social unrest”.

Foot Locker revenue up 17 percent

The company said it would be reinstating its 15 cent quarterly dividend.

“I'm proud of the exceptional effort from our team this quarter,” Foot locker CEO and president Richard Johnson said in a statement. “Despite the challenging backdrop of the pandemic, and social unrest, we achieved strong second quarter results, led by our digital business, with a return to growth in both the top and bottom line. As our global fleet of stores reopened, our customers responded with enthusiasm and energy to our assortments and visited our stores with a high intent to purchase.

“As the Covid-19 situation continues to evolve, we believe we have the right strategies and strong leadership in place to strengthen our customer connectivity, deepen our strategic relationships with our vendors, navigate the challenges ahead, and emerge from this period better positioned than ever.”

Photo credit: Foot Locker