Foot Locker reported $2.19 billion in third-quarter sales on Friday, sliding past analysts’ estimates of $2.14 billion.
Despite total sales jumping 3.9%, the company’s net income fell year-over-year from $265 million to $158 million — but still managed to beat 2019’s third-quarter net income of $125 million.
Foot Locker has had a busy few months.
- The company announced and completed the acquisition of West Coast athletic retailer WSS for $750 million during the quarter.
- It also announced its acquisition of global retailer Atmos for $360 million in August, closing the deal earlier this month.
- Foot Locker announced LCKR, the company’s first private apparel label since exiting the category three years ago.
Merchandise inventory grew 9.1% year-over-year to $1.3 billion, partly attributed to the WSS acquisition.
Net income reached $790 million for the first nine months of the year — a significant increase from the $200 million posted during the same period last year — and sales totaled $6.6 billion during that span.
Going forward, CFO Andrew Page expects “global supply chain issues to persist throughout the fourth quarter,” but says the company is well-positioned for the holiday season. Full-year revenue estimates for the company are $8.85 billion.
Foot Locker also issued $400 million in senior notes, due in 2029, during the quarter.
