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Total Sales Increased 3.9% in the Third Quarter
· Third Quarter Net Income of $158 Million, or $1.52 Per Share
· Non-GAAP Net Income of $201 Million, or $1.93 Per Share
· Gross Margin Expanded 380 Basis Points to 34.7%
NEW YORK, NY, November 19, 2021 – Foot Locker,Inc.(NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its third quarter ended October30, 2021.
Third Quarter Results
The Company reported net income of $158 million, or $1.52 per share, for the 13 weeks ended October 30, 2021, compared with net income of $265 million, or $2.52 per share, for the corresponding prior-year period, and $125 million, or $1.16 per share, for the third quarter of 2019.
On a non-GAAP basis, the Company earned $1.93 per share for the period compared to the $1.21 per share in the third quarter of 2020, and $1.13 per share in the third quarter of 2019. Excluded from these numbers are certain impairment charges, as well as acquisition and integration costs, as detailed below.
Third quarter comparable-store sales increased 2.2%.Total sales increased 3.9%, to $2,189 million in the third quarter of 2021, compared with sales of $2,106 million for the corresponding prior-year period, and up 13.3% from $1,932 million in the third quarter of 2019. Excluding the effect of foreign exchange rate fluctuations, total sales for the third quarter increased by 3.6%.
“The third quarter was another period of strong performance for our Company that reflects the powerful connectivity we have built with our customers,” said Richard Johnson, Chairman and Chief Executive Officer. “These impressive top and bottom-line results were against a robust back-to-school season from last year and in spite of the ongoing supply chain challenges. On top of that, we succesfully completed the acquisition of WSS in the third quarter, and subsequently closed the atmost transaction as well, welcoming both of these great teams to the Foot Locker, Inc. family.”
“The combination of robust demand and fresh inventory, coupled with more full-priced selling, led to gross margin expansion of 380 basis points to 34.7%, from the 30.9% in the prior year period, ”added Andrew Page, Executive Vice President and Chief Financial Officer. “In addition, we bolstered our already strong balance sheet with the issuance of $400 million of Senior Notes due in 2029, the Company’s new credit benchmark and its first offering in over20 years.”
Year-To-Date Results
For the first nine months of the year, the Company posted net income of $790 million, or $7.54 per share on a GAAP basis, compared with net income of $200 million, or $1.91 per share, for the corresponding prior-year period, and$357 million, or $3.23 per share, for the first nine-months of 2019. On a non-GAAP basis, earnings per share for the nine-month period totaled $6.10, compared with $1.26 per share in the prior year period, and $3.32 per share for the corresponding period in 2019. Year-to-date sales were $6,617 million, an increase of 23.5% from the$5,359 million in the first nine-months of 2020, and an increase of 14.4% from $5,784 million for the corresponding period in 2019. Year-to-date, comparable store sales increased 21.3%, while total year-to-date sales, excluding the effect of foreign currency fluctuations, increased21.7%.