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Investing.com – Foot Locker stock (NYSE:FL) climbed 8% in Friday’s premarket trading as second-quarter same-store sales grew and margins improved due to tight cost control.
Strong demand for childrens’ and women’s footwear drove the retailer’s sales higher in the three months ended July 31.
The company said demand for its apparel and accessories offerings was strong too. Promotional activity was limited and that helped contain the operating expenses. Overall, cost of sales also fell, by 4%.
Several retailers have cut back spending on promotions last few quarters as stores have either stayed shut at many places due to lockdowns or traffic has otherwise been subdued due to the pandemic, leaving effectiveness of the expense in question.
Second-quarter comparable store sales Increased 6.9%. Total sales rose 9.5% to $2.27 billion to surpass analysts’ estimate of $2.07 billion.
Adjusted profit per share of $2.21 was more than double the 97-cent estimate given by analysts.
