Foot Locker Q1 Tops View

(RTTNews) - Foot Locker, Inc. (FL), a specialty athletic retailer, said first-quarter profit increased from the prior year, supported by a 14 percent growth in sales. Both earnings and sales topped Wall Street expectations. The stock added over 5 percent in pre-market trading.

Ken Hicks, chairman and chief executive officer, said, ''We are off to a great start in 2014, with our first quarter results representing the highest quarterly sales and profits in our history as an athletic company - for the third consecutive year."

Net income increased to $162 million or $1.10 per share from $138 million or $0.90 per share last year. The latest results included $2 million of expenses related to the impairment of a trade name and Runners Point Group integration costs.

Excluding items, earnings were $1.11 per share, while it totaled $0.91 last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $1.06 per share. Analysts' estimates typically exclude special items.

Sales increased to $1.868 billion from $1.638 billion, and comparable-store sales increased 7.6 percent. Analysts expected revenues of $1.79 billion.

Excluding the effect of foreign currency fluctuations, total sales for the first quarter increased 13.4 percent.

In the preceding quarter, the company reported net income of $121 million or $0.81 per share on sales that increased 4.6 percent to $1.79 billion.

First-quarter gross margin improved to 34.6 percent from 34.2 percent a year ago. The rate of selling, general, and administrative expenses improved to 19 percent from 19.2 percent.

At May 3, the company's merchandise inventory was $1.268 billion, up 8.5 percent from the end of the first quarter of last year.

Foot Locker spent $70 million to repurchase 1.53 million shares during the quarter.

The stock rose 1.3 percent Thursday to close at $48.17. The stock added 5.13 percent in pre-market trading.