Foot Locker Earnings Race Past Estimates

Foot Locker Inc. (NYSE: FL) reported its fiscal fourth-quarter financial results before the markets opened on Friday. The company said it had $1.16 in earnings per share (EPS) on $2.01 billion in revenue. That compares to consensus estimates from Thomson Reuters of $1.12 in EPS on revenue of $2.00 billion. The same period from the previous year had EPS of $1.00 and $1.91 billion in revenue.

Fourth quarter comparable-store sales increased 7.9%, while total sales only increased 5.0%.

During this quarter, Foot Locker repurchased 1.64 million shares of its common stock for $103 million.

The company opened 111 new stores, remodeled or relocated 209 stores and closed 151 stores during fiscal 2015. As of January 30, 2016, the company operated 3,383 stores in 23 countries.
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On the books, the company had $1.02 billion in cash and cash equivalents at the end of the quarter, compared to $967 million in the same period from last year.

Richard Johnson, president and chief executive officer of Foot Locker, commented on earnings:

In 2015, we continued to deliver outstanding financial performance across channels, geographies, banners, and product categories. We began the year by introducing a revised strategic framework and priorities, as well as elevated long-term financial objectives.  I could not be more proud of the progress the team has made developing leadership positions in so many areas of our business.

He added:

Building on those leadership positions, we believe we can continue to elevate our financial performance in 2016 by generating a mid-single digit comparable sales gain and another double digit percentage increase in earnings per share.

Shares of Foot Locker closed Thursday up 0.4% at $67.03, with a consensus analyst price target of $76.52 and a 52-week trading range of $55.61 to $77.25. Following the release of the earnings report, the stock was up 1.5% at $68.01.