Consumers have more money in their pockets thanks to government stimulus checks — and apparently many are using it at malls and online to buy new sneakers, which is good news for Foot Locker.
The sneaker chain previewed its second-quarter results Monday ahead of the official release, saying sales were much better than expected and added it will actually report a profit. Foot Locker, which will release its full results on August 21, indicated that sales at stores open at least a year surged 18% in the quarter, thanks to the reopening of many locations in June following closures in March because of the Covid-19 outbreak.
The company also said it anticipated it would report quarterly earnings of between 66 cents and 70 cents a share. Wall Street was predicting a significant loss.CFO Lauren Peters said in the release that the company was able to generate a profit thanks to"disciplined expense management" and stronger sales — despite what she referred to as"a highly promotional environment." That phrase typically means retailers slashing prices to get customers in the door.
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