Mar 3, 2011
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Foot Locker beats with jump in Q4 profit

Mar 3, 2011

Mar 2 - Athletic footwear retailer Foot Locker Inc posted quarterly profit on Wednesday that more than doubled, helped by margin expansion and same-store sales growth.

Foot Locker
Converse - one of the brands sold by footwear retailer Foot Locker

Net income in the holiday fourth quarter rose to $57 million, or 36 cents per share, compared with $23 million, or 14 cents per share, in the year-earlier quarter.

Excluding an after-tax charge related to the writedown of assets, earnings were 39 cents per share.

Analysts polled by Thomson Reuters I/B/E/S had expected 36 cents per share.
Revenue rose 5.1 percent to $1.39 billion, above the $1.38 billion expected by analysts, while same-store sales rose 7.3 percent.

Despite an uncertain economic recovery, retailers such as Foot Locker and smaller rival Finish Line Inc that sell footwear under brands from Nike Inc, Converse, Puma and Adidas AG, have benefited from improving demand for athletic and running shoes.

Moreover, Foot Locker is now reaping the rewards of closing about 650 underperforming stores over the last three years to drive sales and margin growth.

Shares in Foot Locker, which operates more than 3,400 stores, closed at $19.42, up 1 percent, on the New York Stock Exchange.

(Reporting by Alexandria Sage; editing by Andre Grenon and Gunna Dickson)

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