• Foot Locker (NYSE: FL) reports sales rose 7.3% year-over-year in Q2 after stripping out the impact of foreign exchange swings. Sales increased 28.2% during the quarter against the pre-pandemic level of 2019.
• The retailer says it saw strong results in its women's and kids' footwear business during the quarter, along with broad demand for apparel and accessories offerings. A combination of robust demand and lean inventory led to lower levels of promotional activity. Gross margin for the quarter was 35.1% of sales. EPS almost tripled from a year ago to $2.21 to smash the consensus expectation.
• Foot Locker (FL) ended the quarter with a cash position net of debt of $1.733B. FL spent $8M on buybacks in Q2 and invest $36M in its store fleet, digital capabilities, supply chain, and other infrastructure. "Our approach to capital allocation remains focused on investing in growth opportunities while also returning cash to shareholders through our quarterly dividend and opportunistic share repurchase program," says CEO Richard Johnson. Guidance will follow with the earnings call.
• Shares of Foot Locker (FL) are up 7.56% premarket to $58.50 after the earnings topper.