Foot Locker Q2 profit, sales top estimates

New York -- Foot Locker on Friday turned in another winning performance, posting sales and income for the second quarter that topped analysts’ estimates.

Net income for the quarter increased to $92 million, from $66 million in the year-ago period.

Total sales increased 12.9%, to $1.64 billion, compared with $1.45 billion for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the second quarter increased 11.7%.  

Same-store sales rose 7%. Analysts had predicted a gain of 5.4%.

“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 and CEO. "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."

During the second quarter, Foot Locker repurchased approximately 1.33 million shares of its common stock for $66 million.    

"So far this year, we have returned $200 million of cash to our shareholders through our dividend and share repurchase programs," said Lauren B. Peters, executive VP and CFO. "Our strong financial position has enabled us to consistently increase those programs in recent years while we have also made substantial investments in the business, including the $220 million of capital expenditures we are targeting for fiscal 2014."

As of Aug. 2, 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, as well as 27 franchised Runners Point and Sidestep stores in Germany and Switzerland.

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