Foot Locker, Inc (FL) has reported a 96.25 percent jump in profit for the quarter ended Oct. 29, 2016. The company has earned $157 million, or $1.17 a share in the quarter, compared with $80 million, or $0.57 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $152 million, or $1.13 a share compared with $141 million or $1 a share, a year ago. Revenue during the quarter grew 5.13 percent to $1,886 million from $1,794 million in the previous year period. Gross margin for the quarter expanded 10 basis points over the previous year period to 33.93 percent. Total expenses were 87.91 percent of quarterly revenues, down from 93.48 percent for the same period last year. This has led to an improvement of 557 basis points in operating margin to 12.09 percent.
Operating income for the quarter was $228 million, compared with $117 million in the previous year period.
"Our outstanding track record of meaningful sales and profit growth over several years is a strong testament to Foot Locker, Inc.’s solid position at the center of sneaker culture," said Richard Johnson, chairman of the board and chief executive officer. "Our associates work hard every day to make our Company the sneaker lover’s preferred destination for the best footwear and apparel assortments across our array of outstanding athletic vendors. That work translated once again into an exceptional quarterly sales and profit performance."
Working capital increases
Foot Locker, Inc has recorded an increase in the working capital over the last year. It stood at $1,974 million as at Oct. 29, 2016, up 7.81 percent or $143 million from $1,831 million on Oct. 31, 2015. Current ratio was at 4.64 as on Oct. 29, 2016, up from 3.77 on Oct. 31, 2015. Days inventory outstanding has decreased to 50 days for the quarter compared with 102 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 24 for the same period last year.
Debt comes down marginally
Foot Locker, Inc has recorded a decline in total debt over the last one year. It stood at $128 million as on Oct. 29, 2016, down 2.29 percent or $3 million from $131 million on Oct. 31, 2015. Total debt was 3.47 percent of total assets as on Oct. 29, 2016, compared with 3.55 percent on Oct. 31, 2015. Debt to equity ratio was almost stable at 0.05 as on Oct. 29, 2016, when compared with the last year. Interest coverage ratio improved to 228 for the quarter from 117 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
