Foot Locker, Inc. (NYSE: FL) floundered on second-quarter numbers.
The New York-based sporting goods giant reported Friday morning second quarter net income of $88 million, or $0.75 per share, compared to net income of $51 million, or $0.39 per share in the same period of fiscal 2017.
Second quarter comparable store sales increased 0.5%. Total second-quarter sales increased 4.8% to $1,782 million this year, compared to sales of $1,701 million for the corresponding prior-year period.
Excluding the effect of foreign exchange rate fluctuations, total sales for the second quarter increased 3.9%. The Company's gross margin rate increased to 30.2% from 29.6% a year ago, while the SG&A expense rate increased to 21.3% from 19.9% in the second quarter of 2017.
"Our performance reflects the work we are doing on several fronts to position the Company to succeed in a rapidly evolving retail environment," said CEO Richard Johnson.
"We remain optimistic that our improving product flow and depth in premium styles positions us to deliver stronger comparable sales growth in the second half of 2018."
During the second quarter, the Company opened 13 new stores, remodeled or relocated 33 stores, and closed 21 stores. As of early this month, the Company operated 3,276 stores in 24 countries in North America, Europe, Australia, and New Zealand. In addition, 107 franchised Foot Locker stores were operating in the Middle East, as well as 10 franchised Runners Point stores in Germany.
Shares in the chain dropped $4.75, or 8.9%, to $48.45
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