Why Shares of Foot Locker Jumped Today
Shares of footwear retailer Foot Locker (NYSE: FL) soared on Friday following a third-quarter report that wasn't as bad as feared. While comparable sales slumped, the company beat expectations and said it may beat its previous holiday quarter guidance. Foot Locker also announced an expanded partnership with Nike, news that could be contributing to the gains. The stock was up about 25% at 12:50 p.m. EST.
Foot Locker reported third-quarter revenue of $1.87 billion, down 0.8% year over year but $40 million higher than the average analyst estimate. Excluding currency effects, revenue would have slumped by 2.3%. Comparable store sales fell 3.7%, with the company pointing to a highly promotional environment as one factor driving down sales.
Image source: Foot Locker.
Source: Fool.com
