Foot Locker, Inc. (NYSE:FL) sprang forward Wednesday after the company reported stronger-than-expected earnings for its third quarter on Tuesday.
The New York-based specialty athletic retailer, reported net income of $130 million, or $1.14 per share, compared to net income of $102 million, or $0.81 per share in the same period of fiscal 2017.
This result included a $2-million million pre-tax charge related to the Company's previously-disclosed pension litigation judgment, offset by $23 million of tax benefits related to last year's tax reform bill for 1) a decrease to the tax on the deemed repatriation of foreign earnings, and 2) a decrease to tax expense for IRS accounting method changes and timing difference true-ups.
Excluding these items, which increased after-tax earnings by 19 cents per share, non-GAAP earnings were $0.95 per share, a 9% increase over the non-GAAP earnings of $0.87 per share in the comparable 13-week period in 2017.
Third-quarter comparable store sales increased 2.9%. Total third quarter sales decreased 0.5%, to $1.860 billion this year, compared to sales of $1.870 billion for the corresponding prior-year period.
The Company's gross margin rate increased to 31.6% from 31.0% a year ago
During the third quarter, the Company opened 10 new stores, remodeled or relocated 13 stores, and closed 20 stores. The Company operates 3,266 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 108 franchised Foot Locker stores were operating in the Middle East, as well as 10 franchised Runners Point stores in Germany.
Shares leaped $7.40, or 16.1%, to $53.49
