The shares of athletic footwear and workout apparel manufacturer FootLocker are rallying today after the company posted excellent gains earlier today.
FootLocker’s Revenue Surpasses Analysts’ Estimate
Leading athletic footwear and workout apparel manufacturer FootLocker revealed its second-quarter earnings for the 2021 fiscal year earlier today. FootLocker’s earnings in the previous quarter surpassed the earnings estimated by market analysts.
Revenue in Q2 was $2.28 billion, up by 9.5% from the same quarter of 2020. The $2.28 billion generated by FootLocker also surpassed the $2.09 billion expected by Wall Street analysts. The net income for FootLocker in the previous quarter was $430 million, or $4.09 per share, compared with $45 million, or 43 cents per share in Q2 2020.
Another aspect the company excelled in was its comparable sales. The comparable sales surged by 6.9%, while analysts had estimated a decline of 0.2% in the second quarter. FootLocker’s CFO, Andrew Page, said the company is very optimistic about its outlook for the second half of 2021.
He said, “Recognizing we are still operating in an uncertain environment due to Covid-19, we continue to keep a close eye on the business, including temporary store closures and supply chain challenges.”
FootLocker has been expanding its services in recent months. Earlier this month, the footwear manufacturer said it intends to acquire two smaller shoe store chains, with the deals expected to cost around $1.1 billion.
FM Up By Nearly 10% Today
The shares of FootLocker have been rallying since the company presented its Q2 earnings report earlier today. Currently, FM is trading above $58 per share, up by more than 8% so far today. Year-to-date, FM is also one of the top performers in its industry.
FootLocker’s stock price is up 50% since the start of 2021. It began the year trading at $38 per coin, but it is now trading at $58 per share at the moment. The company intends to expand its reach by acquiring those companies. The deals are expected to take FootLocker’s products outside malls and ensure its entry into Asia.