Foot Locker Stock Gains On Q2 Beat, Strong Margins

Foot Locker Inc FL reported second-quarter FY21 sales growth of 9.5% year-on-year, to $2.27 billion, beating the analyst consensus of $2.09 billion. Total sales increased 28.2% compared to Q2 2019.
Comparable-store sales for the quarter increased by 6.9%.
The gross margin expanded by 920 basis points to 35.1%.
Selling, general and administrative expenses rose 16.2% Y/Y to $450 million.
The operating margin was 11.6%, and operating income for the quarter rose 282.6% Y/Y to $264 million.
The company held $1.85 billion in cash and equivalents as of July 31, 2021.
Foot Locker's merchandise inventories decreased 9.5% Y/Y to $1.1 billion at Q2-end.
Adjusted EPS of $2.21 beat the analyst consensus of $1.00.
"This quarter reflects strong results in our women's and kids' footwear business along with broad demand for our apparel and accessories offerings, which combined with more limited promotional activity, led to the outstanding top and bottom line results," said Chairman and CEO Richard Johnson.
Foot Locker said it is cautiously optimistic about the outlook for the back half of 2021.
Price Action: FL shares traded higher by 7.63% at $58.5 on the last check Friday.

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