Foot Locker profits jump 39%

Foot Locker (NYSE:FL) reported a 39 percent jump in profits for the second quarter, yielding a net income of $92 million. The company has basketball shoes and the Nike brand to thank.

Comparable store sales increased 7 percent and total store sales increased 12.9 percent.

The brand has consistently reported profit and sales growth in the past several years. Strong sales in basketball and running shoes have spearheaded the company's most recent returns. According to a recent study, the athletic footwear market hit $22 billion in the United States last year, reported Forbes.

"The team at Foot Locker once again achieved record levels of sales and profits in the second quarter, and I am extremely proud of their efforts," said Ken Hicks, chairman and CEO.  "We delivered excellent financial and operational results through the outstanding execution of our strategic priorities. This continues to be a winning formula for us, and we remain committed to taking full advantage of the many opportunities we have identified—over the near, intermediate, and longer terms—to continue producing a consistent, strong performance." 

The company's net income in the first half rose to $254 million, compared to $204 million in the same period in 2013. Year-to-date sales were $3,509 million, an increase of 13.5 percent from the corresponding first half in 2013.

Since Hicks took the reins in 2007, the retailer has managed to deliver 18 consecutive quarters of comparable sales growth and record-breaking financial results in 2013. Foot Locker is also seeing a profit boost from e-commerce sales on its six online storefronts, as well as from shop-in-shops, which are mini-boutiques dedicated to individual Foot Locker sports brands.

FierceRetail spoke with Hicks to talk supply chain, how Foot Locker is targeting mobile millennials, and how Hicks defines and approaches marketing as an omnichannel retailer.

For more:
-See this Foot Locker press release
-See this Fortune article

Related stories:
The secret to Foot Locker's success, according to CEO Ken Hicks
Apple's multimedia patent app could have a huge in-store impact
Facebook introduces cross-device tool that sheds light on when customers convert
How Foot Locker is using mobile to reach millennials
Simon to add beacons at 200 malls


 

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