Second-quarter comparable store sales increased 9.6% while total sales only increased 3.3%.
During the second quarter, Foot Locker opened 21 new stores, remodeled or relocated 65 stores, and closed 21 stores. As of August 1, 2015, the company operated 3,419 stores in 23 countries.
Foot Locker spent roughly $76 million to repurchase 1.2 million shares during the quarter, and it paid its quarterly stock dividend of $0.25, spending $35 million.
Richard Johnson, president and CEO of Foot Locker, commented on earnings:
We extended the momentum with which we started 2015, generating outstanding quarterly sales and profits in the second quarter. We continued to achieve broad-based and consistent strength across geographies, banners, channels, and categories. While we work every day to build on our position as a leading global retailer in the athletic industry and produce consistent improvement in our operational and financial performance, I want to pause to acknowledge the incredible team we have at our Company and thank each of them for their contributions in producing these excellent first half results.
Also Lauren Peters, chief financial officer, said:
With the strong top line gain, the team at Foot Locker was able to flow the incremental sales dollars through to the bottom line at a very healthy rate, leading to good progress on all of our long-term goals. Meanwhile, we continue to invest capital carefully in future growth opportunities, while also maintaining a meaningful return of cash to our shareholders through our dividend and share repurchase programs.
The company’s cash totaled $970 million, while the debt on its balance sheet was $132 million.
Shares of Foot Locker closed Thursday down 3.2%, at $72.75 in its 52-week trading range of $51.12 to $74.95. Following the release of the earnings report shares were up 1.4% at $72.75 in early trading indications Friday. The stock has a consensus analyst price target of $70.75.
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