Foot Locker Inc. (NYSE: FL) recently released its Q2 2021 financial results. Performance data indicates that business has already been affected less by the pandemic. The company’s strong quarterly results drove FL’s shares up by 7%, or $0.58 to $58,34 on August 20.
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In the second quarter, Foot Locker’s total revenues grew by 9.5% to $2.3 billion on comparable sales, an increase of almost 7% year over year. Footwear, clothing, and accessories for women and children were the driving force behind the growth.
During the Coronavirus, Foot Locker Inc. (FL) experienced a steep decline in sales for several reasons. First of all, the shops were closed. Further, decreasing the amount of exercise also reduced the demand for running shoes, as well as other sports equipment. However, at the present time, neither of these factors affect the business of Foot Locker.
The global economic recovery boosted Foot Locker’s profits, as it did not need to offer many discounts and promotions in order to boost sales. The retailer’s profitability has therefore improved because of strong demand and the ability to cut marketing costs.
This resulted in Foot Locker’s gross margin increasing to 35.1% in the second quarter. The adjusted net income rose 211% to $233 million, or $2.21 per share. The results were well above Wall Street expectations, which supported the FL stock. By increasing profitability, Foot Locker Inc. (FL) was also able to buy back shares and increase dividends by 50%.
Therefore, Foot Locker Inc. (FL) was able to quickly recover from the COVID-19 crisis. Sales have increased for the second quarter in a row at the company.