Foot Locker Q2 Profit on Stronger Sales

Foot Locker

Stronger sales and its buyout of German specialty athletic retailer Runners Point Warenhandelsges (RPG) helped Foot Locker to book an 11.9% increase in second-quarter net profit.

The company, which operates 3,495 stores, saw net income reach $66 million during the three months to August 3, compared to $59 million in the same period of last year.

Sales grew 6.4% to $1.45 billion from $1.37 billion the prior year, while comparable store sales edged up 1.8%. Excluding the effect of foreign currency fluctuations, total sales rose 5.9%.

The retailer’s merchandise inventory was $1.31 billion during the quarter, up 6% on last year, Excluding Runners Point Group, inventory increased 3%. 

“Sales in the second quarter were more challenging than we planned for, especially in the U.S. Despite this headwind, we produced second quarter ongoing profit and sales results that were our best ever as Foot Locker, demonstrating that the execution of our strategic priorities continues to deliver solid financial and operational results for our shareholders and other stakeholders” said chairman and CEO Ken Hicks.

Year-to-date net income increased 9.1% to $204 million from $187 million, while sales were up 5% to $3.10 billion from $2.95 billion in the previous year.

“We remain confident that we can achieve a mid-single digit comparable sales gain and a double digit percentage profit increase for fiscal 2013, as we build momentum in our operational and financial performance now and over the long term,” Hicks added.

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