Foot Locker: More Room for Growth

An athlete places comfort above anything else while choosing an athlete apparel brand. Worldwide there is a rise in the demand of comfortable fashionable sports apparel. Foot Locker (FL) is a leading global athletic footwear and apparel retailer. Its stores offer the latest in athletic-inspired performance products, manufactured primarily by the leading athletic brands. Foot Locker offers products for a wide variety of activities including basketball, running, and training. Its 1,911 stores are located in 21 countries.

A Look at the Recent Results

(Second Quarter Earnings Report)

Net income for the Companys second quarter ended August 2, 2014 was $92 million, or $0.63 per share, compared with net income of $66 million, or $0.44 per share, last year, an increase in earnings per share of 43 percent. Second quarter comparable-store sales increased 7.0 percent.

Total second quarter sales increased 12.9 percent, to $1,641 million this year, compared with sales of $1,454 million for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the second quarter increased 11.7 percent. The Companys gross margin rate increased to 32.0 percent of sales from 31.2 percent in the second quarter of 2013, while the selling, general, and administrative expense rate improved to 20.9 percent of sales from 21.6 percent last year.

The team at Foot Locker once again achieved record levels of sales and profits in the second quarter, and I am extremely proud of their efforts, said Ken C. Hicks, Chairman of the Board and Chief Executive Officer. We delivered excellent financial and operational results through the outstanding execution of our strategic priorities. This continues to be a winning formula for us, and we remain committed to taking full advantage of the many opportunities we have identified --- over the near, intermediate, and longer terms --- to continue producing a consistent, strong performance.

(Store Status)

During the second quarter, the Company opened 14 new stores, remodeled/relocated 112 stores and closed 18 stores. As of August 2, 2014, the Company operated 3,460 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 47 franchised Foot Locker stores were operating in the Middle East and South Korea. (Source: Companys Website)

Soaring Expectations

FL is currently concentrating on innovating new products. A company prospers by continuous innovation and FL is not an exception to this. Across the globe, many sports apparel companies are targeting female customers, since there is a sharp rise in the female sportswear segment. FL is presently pursuing strategies to woo the women consumers. Further expansion can be expected in Europe. The company is also planning to expand its childrens business by opening new stores for them. The company is focusing on robust expansion strategies. With more focus on store remodeling, e- commerce and technological advancements, the company is all set to grow.

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Foot Locker: More Room for Growth