Shares of Foot Locker Inc are off to the races Friday after the company’s third-quarter results beat analysts' expectations.
The footwear retailer posted revenue of $2.17 billion, a 1% decline from $2.19 billion in the third quarter of 2021, and earnings of $1.27 per share, a 34% dip from $1.74 per share a year earlier. Those figures, though, topped Wall Street's expectations of $2.09 billion and $1.11 per share.
Shares of Foot Locker were up more than 16% at the opening bell.
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In fact, Foot Locker boosted its 2022 full-year EPS guidance to $4.42-$4.50 from $4.25-$4.45. Total sales are expected to decline only 4% to 5%, compared to the company’s prior estimate of a 6%-7% drop.
"Foot Locker's solid third-quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organization that I am honored to now be leading," CEO Mary Dillon said in a statement. "Despite the tough environment, our expanding customer base remained resilient, and I'm proud that our team delivered sales above our expectations, thanks to their exceptional execution."
There has been a knock-on effect, too, as shares of Nike Inc (NYSE:NKE) improved nearly 2% and Dick’s Sporting Goods Inc stock added more than 3%.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel