Foot Locker (NYSE:FL) advanced in early trading after strong demand for basketball and running shoes helped the footwear retailer to post better-than-expected quarterly profit and sales.
Shares gained as much as 4.8% as of 8:43 a.m. in New York. The stock had risen 9.5% this year through Thursday.
Net income dropped to $80mln, or $0.57 per share, in the three months ended October 31, from $120mln, or $0.82 per share, a year earlier, the New York-based company said in a statement on Friday.
Removing exceptional items, the company earned $1 per share, above the $0.95 average estimate of 23 analysts polled by Capital IQ.
Revenue rose 3.6 to $1.79bn, also above the Wall Street consensus of $1.78bn. Same-store sales grew 8.7% in the third quarter, more than the 6.1% rise analysts on average had expected, Reuters reported, citing Consensus Metrix.
Foot Locker saw growth in categories including basketball gear and running styles at a time when the U.S. sportswear industry shifts toward more fashion- and lifestyle-focused athletic looks and away from more technical sports goods.
“We are heading into the holidays with very fresh and distinctive assortments to drive full-price selling,” chief financial officer Lauren Peters said in the statement.