Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, saw its shares stumble on releasing financial results for its first quarter ended May 4.
Net income proved $172 million, or $1.52 per share, compared to net income of $165 million, or $1.38 per share in the corresponding prior-year period. Excluding charges recorded in connection with FL’s pension matter, non-GAAP earnings were $1.53 per share and $1.45 per share for the first quarter of 2019 and 2018, respectively.
First quarter comparable-store sales increased 4.6%. Total first quarter sales increased 2.6%, to $2,078 million, compared to sales of $2,025 million for the corresponding prior-year period. Excluding the effect of foreign exchange rate fluctuations, total sales for the first quarter of 2019 increased 4.7%.
The company's gross margin rate increased to 33.2% from 32.9% a year ago, while the SG&A expense rate increased to 20% from 19% in the first quarter of 2018, largely reflecting the strategic investments the Company is making in its digital capabilities and infrastructure.
According to CEO Richard Johnson, "We started the year with great energy, innovative products, and exciting customer events, leading to solid top-line growth in the first quarter with strong performance across our regions, banners, channels, and categories.
"Based on the momentum we have underway, we feel confident that the updated strategic imperatives we introduced at our Investor Day in March position us to deliver on our long-term goals."
Shares backpedaled $8.98, or 17%, to $43.85
