Foot Locker Q2 net increased to $127 millionStaff Writer | August 19, 2016
Foot Locker reported financial results for its second quarter ended July 30, 2016. Net income was $127 million, or $0.94 per share, compared with net income of $119 million, or $0.84 per share, last year.
Foot Locker Gross margin rate improved to 33 percent of sales
Excluding the effect of foreign currency fluctuations, total sales for the second quarter increased 5.4 percent.
The company’s gross margin rate improved to 33 percent of sales from 32.6 percent a year ago, while the selling, general, and administrative expense rate increased to 19.7 percent of sales from 19.5 percent.
Net income for Foot Locker’s first six months of the year increased to $318 million, or $2.33 per share, compared to net income of $303 million, or $2.14 per share, for the corresponding period in 2015.
Earnings per share for the six-month period increased 8.9 percent compared to the same period in 2015.
Year-to-date sales were $3,767 million, an increase of 4.3 percent compared to sales of $3,611 million in the corresponding six-month period of 2015.
Year-to-date comparable store sales have increased 3.7 percent. Excluding the effect of foreign currency fluctuations, total year-to-date sales increased by 4.6 percent.
At July 30, 2016, Foot Locker’s merchandise inventories were $1,339 million, 1.7 percent higher than at the end of the second quarter last year. Using constant currencies, inventory increased 1.9 percent.
Foot Locker’s cash totaled $945 million, while the debt on its balance sheet was $129 million. The company spent approximately $188 million to repurchase 3.35 million shares during the quarter and paid a quarterly dividend of $0.275, spending $37 million. ■