Foot Locker Inc (NYSE:FL) noticed its shares staggering back Friday, as it reported third-quarter FY21 sales growth of 3.9% year-on-year, to $2.189 billion, beating the analyst consensus of $2.12 billion. Third-quarter comparable-store sales increased 2.2%. Adjusted EPS of $1.93 beat the analyst consensus of $1.37.
The gross margin expanded 380 basis points to 34.7%. Selling, general and administrative expenses rose 8% Y/Y to $458 million.
The operating margin was 9%, and operating income for the quarter rose 10.1% to $196 million. The company held $1.3 billion in cash and equivalents as of October 30, 2021. Footlocker said it expects global supply chain constraints to persist throughout the fourth quarter.
For the first nine months of the year, the Company posted net income of $790 million , or $7.54 per share on a GAAP basis, compared with net income of $200 million , or $1.91 per share, for the corresponding prior-year period, and $357 million , or $3.23 per share, for the first nine-months of 2019.
Said CEO Richard Johnson, "These impressive top and bottom-line results were against a robust back-to-school season from last year and in spite of the ongoing supply chain challenges. On top of that, we successfully completed the acquisition of WSS in the third quarter, and subsequently closed the atmos transaction as well, welcoming both of these great teams to the Foot Locker, Inc. family."
FL shares are trading lower by $5.69, or 9.9% at $51.87 in the first hour on Friday.
