Foot Locker stock jumps after big profit, same-store sales beats

Shares of Foot Locker Inc. ran up 3.0% in midday trading Friday, after the athletic shoe and apparel retailer reported big fiscal first-quarter profit and same-store sales beats, while saying it will reposition its store fleet to focus growth in its iconic banners. For the quarter to May 1, the company swung to net income of $202 million, or $1.93 a share, from a loss of $110 million, or $1.06 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $1.96, beating the FactSet consensus of $1.12. Sales rose 83.1% to $2.15 billion, above the FactSet consensus of $1.90 billion, as same-store sales growth of 80.3% beat expectations for a 53.7% rise. “Our merchandise offering resonated very well with our customers, driving strength in our stores and continued momentum in our digital business,” said Chief Executive Richard Johnson. Separately, the company said it will convert about one-third of its Footaction stores into other banner concepts this year, and will close most of the remaining Footaction stores as leases expire over the next two years. The stock has soared 52.0% year to date, while the SPDR S&P Retail ETF has climbed 41.9% and the S&P 500 has gained 11.1%.

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