Post-Earnings Review - Foot Locker Editor Note: For more information about this release, please scroll to bottom
LONDON, August 28, 2014 /PRNewswire/ --
Investor-Edge.com has issued free post-earnings coverage on Foot Locker Incorporation (NYSE: FL). The company featured in the headlines on Friday, August 22, 2014 after reporting results for the second quarter ended August 02, 2014. For Q2 FY14, Foot Locker Inc.'s diluted EPS rose 43% Y-o-Y and its net income increased $26 million Y-o-Y. Our free coverage report can be accessed at:
Foot Locker Inc.'s GAAP net income for Q2 FY14 stood at $92 million, or $0.63 per diluted share, compared with $66 million, or $0.44 per diluted share in the year ago comparable quarter. Analysts from Bloomberg were expecting the company to report GAAP net income of $80.02 million and GAAP EPS of $0.54 in Q2 FY14. During Q2 FY14, the company recorded a $2 million charge related to the impairment of the CCS trade name. Excluding this item, Foot Lockers Inc. reported second quarter non-GAAP earnings of $0.64 per share, representing a Y-o-Y increase of 39% from $0.46 in Q2 FY13. The company's total sales for the reported quarter rose 12.9% Y-o-Y to $1,641 million. Excluding the impact of foreign currency fluctuations, total sales for Q2 FY14 grew 11.7% Y-o-Y. Further, Foot Locker Inc.'s gross margin for the reported quarter increased to 32.0% of sales from 31.2% in Q2 FY13, while the company's selling, general, and administrative expense rate improved to 20.9% of sales in Q2 FY14, versus 21.6% in Q2 FY13. During Q2 FY14, the company repurchased approximately 1.33 million shares of its common stock for $66 million. The free research on FL can be downloaded as in PDF format at:
During Q2 FY14, the company's comparable-store sales improved 7.0%. As of August 02, 2014, the company's merchandise inventory stood at $1,335 million, up 2.2% Y-o-Y, while the company's cash, cash equivalents, and short-term investments totalled $957 million and the company had a debt of $137 million on its balance sheet. During Q2 FY14, the New York-based specialty athletic retailer opened 14 new stores, remodelled or relocated 112 stores, while it closed 18 outlets. As of August 02, 2014, Foot Locker operated 3,460 stores in 23 countries. Further, the company has 47 franchisee-based outlets in the Middle East and South Korea, along with 27 franchised Runners Point and Sidestep stores in Germany and Switzerland.
Ken C. Hicks, Chairman of the Board and CEO of Foot Locker, stated in the recent press release that the company has achieved record levels of sales and profits in the second quarter. He added that the company delivered excellent financial and operational results through outstanding execution of its strategic priorities. He further stated that Foot Locker remains committed to take optimum advantage of the opportunities it has identified over the near, intermediate and long terms so as to continue to deliver a consistent and strong performance. Sign up and read the free analyst's notes on FL at:
The Executive Vice President and CFO of Foot Locker Inc., Lauren B. Peters, added that so far this year, the company has returned $200 million of cash to its shareholders through its dividend and share buy-back programs. She emphasized that the company's strong financial position has enabled it to consistently enhance dividend and share repurchase programs in recent years. Ms. Peters added that apart from these programs, the company has also made significant investments in the business, including the $220 million of capital expenditures targeted for FY 14.
On Friday, August 22, 2014, shares in Foot Locker Inc. advanced 2.95% to end the session at $54.12. On the last close, Wednesday, August 27, 2014, the stock hit a new 52-week high of $56.53, before closing the session 1.75% higher at $56.34. A total of 2.26 million shares were traded, which was above its three months average volume of 1.51 million shares. Over the previous three trading sessions and over the last one month, the company's shares have gained 4.10% and 16.33%, respectively. Moreover, the stock has surged 35.96% from the beginning of 2014. Foot Locker Inc.'s shares are trading above their 50-day and 200-day moving averages of $50.03 and $44.71, respectively. Further, the stock traded at a PE ratio of 17.19 and has a Relative Strength Index (RSI) of 74.94. Visit Investor-Edge and access the latest research on FL at:
Sneak Peek to Corporate Insider Trading
On August 21, 2014, Lauren B. Peters, Chief Financial Officer and Executive Vice President of the company, bought 40,000 shares, worth $604,000 at a price of $15.10 per share, while on the same day she disposed 40,000 shares worth $2.08 million, at $52.00 per share. In addition, on August 01, 2014, three other insiders bought a total of 544 shares of Foot Locker Inc. worth $26198.75 at $48.12 per share. Complimentary in-depth research on FL is available at:
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