Foot Locker saw a boost in sales, despite the pandemic causing many people to lose their jobs. The retailer of footwear said their second quarter results are better than they anticipated. They are set to release full report, including profits, by August 21.
Foot Locker shares, following the news from the company on Monday, rose by seven percent. Even Nike shares climbed by four percent. The retail company said comparable-store sales for the quarter were up by 18 percent. Though many of their stores closed last March due to the emergence of the coronavirus outbreak, they were able to recover on June’s reopening of many locations. They also expect adjusted earnings ranging between $0.66 to $0.70 per share. Analysts projected a loss of $0.60 per share.
Chairman and chief executive for the company, Richard Johnson, cited the federal aid for Americans helped buoyed their sales figures. He also noted that both their online stores and brick-and-mortar shops in malls garnered strong sales.
Consumers have more money in their pockets thanks to government stimulus checks — and apparently many are using it at malls and online to buy new sneakers, which is good news for Foot Locker. https://t.co/sEwJV46wdD
— CNN (@CNN) August 10, 2020
“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,” Johnson said.
Foot Locker’s chief financial officer Lauren Peters also cited “disciplined expense management” for the company’s sight of profits. That is also despite many discounts—in “a highly promotional environment”—were also offered.
However, shares for the sneaker seller is still 25 percent down for this year. Even big names in the footwear business like Nike, Adidas, and Under Armour also reported of decrease in sales.
“While these undoubtedly remain challenging times, we are nonetheless pleased by the health of our category,” CEO Johnson said in the statement.
Closing Shop on Thanksgiving
Meanwhile, the company also said their stores will be closed on Thanksgiving Day, per the Yahoo! news site. Foot Locker is one of the recent retail companies to announce shutting operations of that day to let their staff take the day off for the holiday. Among those to close shop on November 26 are Walmart and Target.