Footlocker Inc (NYSE:FL) posted latest quarterly numbers, which were ahead of Wall Street expectations, signalling the sports wear group could be on its way back.
Net income for the second quarter rose 73% from a year ago to US$88mln, or US$0.75- better than the US$0.71 analysts had pencilled in.
There was a 4.8% year-on-year rise in sales to US$1.78bn for the quarter to August 4.
"Our performance reflects the work we are doing on several fronts to position the company to succeed in a rapidly evolving retail environment," said Richard Johnson, chairman and chief executive.
"We remain optimistic that our improving product flow and depth in premium styles positions us to deliver stronger comparable sales growth in the second half of 2018."
Lauren Peters, the executive vice president and chief executive, added: "We are encouraged by the results we delivered, including a return to growth on the top line combined with gross margin expansion.
"We maintained our disciplined approach to inventory management in the second quarter, which is enabling us to flow improving merchandise assortments into the business for back-to-school and the holidays."
Comparable store sales advanced 0.5% and the gross margin rate increased to 30.2% versus 29.6% 12 months ago.