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Foot Locker Surges after Q1 Results (FL)

Foot Locker Inc. (NYSE: FL), a global retailer of athletic shoes and apparel, today, released its first-quarter financial results. FL shares have surged following the release of record quarterly results.

FL shares rose to an intra-day high of $31.83, and at last check, the stock was trading 8.96% higher at $30.52 on above average volume of 5.97 million.

Foot Locker reported first-quarter net income of $128 million, or $0.83 per share, up from $94 million, or $0.60 per share reported for the same period in the previous year. Sales for the first quarter rose 8.7% to $1.578 billion. Comparable-store sales, a key measure for retailers, rose 9.7% in the first quarter.

Commenting on the solid first-quarter financial results, Ken C. Hicks, Chairman and CEO of Foot Locker, said that 2012 has gotten off to an outstanding start, with FL’s first-quarter results representing the highest level of quarterly earnings in the company’s history as an athletic business. Hicks said that the first quarter continued FL’s recent track record of meaningful sales and profit increases over the comparable prior-year periods.

During the first quarter, Foot Locker opened 25 new stores, remodeled or relocated 53 stores, and shut down 34 stores. As of April 28, 2012, FL operated 3,360 stores in 23 countries.

FL also repurchased 878,700 shares in the first quarter for approximately $27 million. The buyback was part of FL’s $400 million share repurchase program, which was authorized by the Board of Directors earlier in the year.

FL ended the quarter with cash and short-term investments of $909 million.

 


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