Foot Locker, Inc. (NYSE:FL) shares have rocketed close to 30% on Thursday after its turnaround plan started to bear fruit, with first-quarter profits smashing analysts’ expectations.
Earnings per share came in at US$0.22, beating Wall Street guidance of US$0.12, after a period in which average selling prices of its products increased.
It comes despite like-for-like sales dropping 1.8% year-on-year, with revenues reaching US$1.88 billion, in line with analysts’ expectations.
Looking forward to the full year, Foot Locker expects sales to move between a 1% decline and a 1% rise, compared to Wall Street’s predictions for a 0.6% decline.
Earnings per share are expected to reach between US$1.50 and US$1.70 during the twelve months, compared to estimates of US$1.57.
“We had a solid start to the year in the first quarter, which demonstrates that our Lace Up Plan is working,” CEO Mary Dillon said in an interview with CNBC.
“The reason I feel confident — we’re launching an enhanced FLX rewards program, so we have a lot of opportunity with rewards.
“We’re launching a revamped mobile app, which we know is a great way to drive customer engagement and commerce and we see growth opportunities ... with all of our brand partners throughout the year, including returning to growth with Nike in the holiday quarter.”