Foot Locker Inc. provided a sales and earnings update for the second quarter of 2020 ended August 1, 2020. The company announced that comparable-store sales increased by approximately 18 percent for the second quarter. Additionally, diluted earnings per share for the same period, which include pre-tax charges of approximately $19 million related to the wind-down of the Runners Point banner and the Eastbay restructuring, and approximately $18 million for costs incurred in connection with the recent social protests, are expected to be 38 cents to 42 cents per share versus 55 cents last year. On a non-GAAP basis, excluding the items mentioned above, second-quarter earnings are expected to be 66 cents to 70 cents per share versus 66 cents last year.
“In the midst of the COVID-19 pandemic, our team delivered strong second-quarter results. As we continued to reopen stores throughout the quarter, we saw a strong customer response to our assortments, which we believe was aided by pent-up demand and the effect of fiscal stimulus. This fueled our in-store sales and also drove continued momentum across our digital channels,” said Richard Johnson, chairman and chief executive officer. “While these undoubtedly remain challenging times, we are nonetheless pleased by the health of our category, our deep connections with our customers, and the strength of our vendor relationships.”
“Despite gross margin pressure from channel mix shift and a highly promotional environment, we were able to return to positive earnings per share due to the meaningful lift in top-line sales and disciplined expense management,” added Lauren Peters, executive vice president and chief financial officer.
The company previously withdrew its full-year 2020 guidance in March. Given the uncertainty surrounding the evolving COVID-19 pandemic and its potential impact on the back-to-school season, team sports participation and additional government stimulus packages, the company does not plan to provide a full-year 2020 outlook at this time.
The company plans to report financial results for its second quarter ended August 1, 2020 before the U.S. markets open on Friday, August 21, 2020.
Photo courtesy Foot Locker
