New York-based shoe retailer, Foot Locker, published a striking quarterly report on Thursday beating the predictions on all accounts. News about the report had the company stock rallying 15% in premarket trading.
Find the best trading platform. You capital is at risk when trading. Be careful.Foot Locker has been performing quite well since mid-2017, and by the looks of it, nothing can stop them right now even as Amazon makes a move on the retail industry. Yesterday, Foot Locker published their first earnings call of 2018, and the numbers were impressive which had the stock rallying 15% before the market opened on Friday.
During the first few months of 2017, Foot Locker reported earnings per share at $1.45, compared to the most optimistic forecast that was put at $1.25. Likewise, the company’s revenue was up to $2.03 billion which was also much higher than Wall Street predictions.
According to Foot Locker CEO, Richard Johnson, this quarterly report is the first one to be above the company’s own expectations, and he has a positive view of the future.
“The flow of premium product continues to improve, with increasing breadth and depth in the most sought-after styles from our key vendors,” Johnson stated before continuing “With the strength of our strategic vendor partnerships and our central position in youth culture, we continue to believe that we are poised to inflect to positive comparable-store sales growth.”
Wall Street is Worried About the Retail Industry
Many Wall Street analysts are worried about the retail industry even though Foot Locker has been doing well for the past few months. The concern over the retail market is because of Amazon and their recent moves to take over the retail space. In fact, most experts agree that the retail industry will see major losses in the next few years solely based on the rise of online retail and the dominance of Amazon and Alibaba.
For Foot Locker, Amazon poses a more specific threat after striking a deal with Nike that promised the e-commerce giant exclusive rights to some of Nike’s limited products. Also, according to a recent study, 13 percent of customers prefer ordering Nike products from Amazon compared to 9 percent that prefers Foot Locker.
Find the best trading platform. You capital is at risk when trading. Be careful.