Foot Locker’s Earnings Strength Helps Propel Nike, Under Armourby and
Basketball sneakers from Irving, Curry performed well
Second-quarter sales and profit topped analysts’ estimates
Foot Locker Inc. rose the most in four years after the sneaker chain’s second-quarter results beat analysts’ estimates, helping propel shares of Nike Inc. and Under Armour Inc.
Earnings grew to 94 cents a share last quarter, the New York-based chain said on Friday. Analysts had estimated 90 cents a share on average, according to data compiled by Bloomberg.
Foot Locker cited basketball sneakers, running shoes and classic styles for helping drive the growth. Basketball shoes promoted by Kyrie Irving and Stephen Curry -- both of whom played in the NBA finals in the spring -- performed well in the period. The company also worked with top suppliers to ensure its assortment matches current trends, Chief Executive Officer Richard Johnson said.
“Most of the basketball shoes that we sell never see a basketball court, most of the running shoes that we sell never see the roads are the trails for the track to run in,” he said on a conference call. “They just look really good, and they’re part of the sneaker culture that we really support.”
Foot Locker climbed as much as 10 percent to $67.98 in New York trading, the biggest intraday gain since May 2012. The bullish outlook for industry also helped push up shares of Nike 3 percent and Under Armour 2.9 percent.
Foot Locker’s same-store sales grew 4.7 percent last quarter, beating the 3.7 percent estimate. Total revenue amounted to $1.78 billion. Analysts had estimated $1.76 billion.
“We also posted gains in all regions and channels in which we operate,” Johnson said in Friday’s statement.