Foot Locker, Inc. (NYSE: FL) reported better-than-expected results for its first quarter.
The New York-based specialty athletic retailer reported net income for the first quarter was $165 million, or $1.38 per share, compared to net income of $180 million, or $1.36 per share in the same period of fiscal 2017. This result included an incremental $12 million charge related to the Company's pension litigation.
Excluding this charge, which reduced after-tax earnings by seven cents per share, non-GAAP earnings were $1.45 per share.
First quarter comparable-store sales decreased 2.8%. Total first quarter sales increased 1.2%, to $2,025 million this year, compared to sales of $2,001 million for the corresponding prior-year period. Excluding the effect of foreign exchange rate fluctuations, total sales for the first quarter decreased 1.5%.
The Company's gross margin rate decreased to 32.9% from 34% a year ago, while the SG&A expense rate increased to 19 percent from 18.5% in the first quarter of 2017, primarily reflecting the significant investments the Company is making in its digital operations.
"The flow of premium product continues to improve, with increasing breadth and depth in the most sought after styles from our key vendors," said Richard Johnson, Chairman and Chief Executive Officer.
"This led to first quarter results which were above our expectations. With the strength of our strategic vendor partnerships and our central position in youth culture, we continue to believe that we are poised to inflect to positive comparable-store sales growth as we progress through the year."
Shares in Foot Locker leaped $6.11, or 13.2%, to $52.50
