Foot Locker Is One Retailer Shrugging Off COVID-19 With Q2 Results
Specialty retailer Foot Locker reported better than expected quarterly results before the markets opened on Friday and reinstated its dividend.
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Foot Locker Inc. (NYSE: FL | FL Price Prediction) reported its most recent quarterly results before the markets opened on Friday. The shoe retailer said that it had $0.71 in earnings per share (EPS) and $2.08 billion in revenue. Analysts were calling for $0.57 in EPS and revenue of $2.0 billion. The second quarter of last year reportedly had EPS of $0.66 on $1.77 billion in revenue.
Note that GAAP EPS would have come in at $0.55, still beating estimates. However, this calculation included a few charges, namely: $19 million related to the wind-down of the Runners Point banner and the Eastbay restructuring, $18 million for costs incurred in connection with the recent social unrest and $1 million related to administrative costs for its previously disclosed pension matter.
Also, COVID-19 appeared to be somewhat of a non-factor on the topline as second-quarter comparable-store sales increased 18.6% year over year and total second-quarter sales increased 17.1%.
On the books, cash totaled $1.37 billion, while the debt on its balance sheet was $121 million for the second quarter. Cash and cash equivalents totaled $939 million in the same quarter of last year.
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Another thing that stood out in this report was that the board of directors reinstated the quarterly dividend program and declared a quarterly cash dividend on common stock of $0.15 per share. The dividend will be payable on October 30 to shareholders of record on October 16.
Despite all this positive news, Foot Locker still declined to issue guidance citing uncertainty regarding COVID-19. Analysts are calling for $0.70 in EPS and $1.88 billion in revenue for the fiscal third quarter.
Foot Locker stock traded up about 3% to $28.05 Friday morning, in a 52-week range of $17.46 to $47.86. The consensus price target is $32.41.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
