Foot Locker Inc. (FL) stock prices were up by 1.27% as of the market closing on August 19th, 2021. This brought the price per share down to USD$54.39 at the end of the trading day. Today, current market fluctuations saw the stock rise by 10.92%, bringing it up to USD$60.33.
FL Stock’s Earnings Breakdown
The second quarter of fiscal 2021 saw FL stock report USD$430 million in net income for the quarter ended July 31st, 2021. This represents a net income of USD$4.09 per share. The prior-year quarter reported net income in the amount of USD$45 million, representing a net income of USD$0.43 per share. The second quarter of 2019 reported USD$60 million in net income, representing a net income of USD$0.55 per share. FL stock reported USD$2.21 per share on a non-GAAP basis for the second quarter of fiscal 2021. This is an increase of more than 200% from the USD$0.71 per share in the prior-year quarter. The 2019 quarter reported USD$0.66 per share in earnings per share.
Strong Q2 2021
The second quarter comparable-store sales were up by 6.9% as compared to the prior year quarter. Total sales were up by 9.5% to USD$2.275 billion in Q2 2021, as compared to USD$2.077 billion in sales for the prior year quarter. FL stock’s strong quarter reflects the health of the market and the immersive engagement the company has with its consumer base. Also made apparent is the strong strategic nature of the company’s relationships with its vendor partners.
Continued Trajectory of Success
The quarter’s stellar performance can be attributed to the strength of the results of the women’s and kids’ footwear business. Further consolidating the quarter’s performance was broad demand for FL stock’s apparel and accessories offerings. In conjunction with more limited promotional activity, the company was pleased to announce outstanding top and bottom line results.
FL Stock Poised for Growth
The start of fiscal 2021 saw the company open up with a very strong quarter. The strength and trends observed in Q1 2021 persisted through the second quarter of the fiscal year. A healthy combination of robust demand and fresh and lean inventory drove significantly lower levels of promotional activity. Gross margins improved, coming in at 35.1% as compared to the 25.9% in the prior year quarter.
Future Outlook for FL Stock
The company reported a strong quarter, the strength of which it hopes to continue into the third quarter of fiscal 2021. FL stock is setting the stage for unprecedented growth as it allocated resources towards continuing its trajectory of success. Investors are hopeful for significant and sustained increases in shareholder value.
