On Friday, Foot Locker released earnings that had outperformed everyone’s predictions. The impressive numbers lead to the company shares surging over 30 percent making it the single best trading day for Foot Locker since 1977. According to the company CEO, it’s all thanks to their growing e-commerce.
The average estimate for earnings on Foot Lockers shares for the third quarter was 80 cents, but the numbers posted today shows that the shares had climbed all the way to 87 cents apiece. In turn, this news created a great surge that resulted in the best trading day for the company in 40 years.
Foot Locker also managed to beat revenue expectations, reporting a total of $1.87 billion in revenue for the same time period.
All of this was achieved during a period when Foot Locker Chairman and CEO Richard Johnson says that the company had witnessed disruption in retail in general, especially in the athletic industry.
Johnson also clarified how Foot Locker managed to outperform their own expectations:
“We are making solid progress on several fronts, including three of the biggest initiatives which I have discussed previously: our new digital e-commerce platform, our mobile app platform development, and our new point-of-sale technology. Each of these multiyear projects will play a key role in enhancing how our customers experience and engage with our banners.”
It is getting more and more evident that the online sales industry is something all retail companies will have to master if they want to survive in the future of sales. Luckily enough for Foot Locker, it seems like they’ve gotten on the gravy train just in time. It’s becoming harder and harder to make a name for yourself within e-commerce with gigantic operators such as Amazon controlling most of the industry.
If you’re not willing to do it yourself, you can always look for help, which is what Nike did in June when they decided to sell a limited assortment of their shoe lines to Amazon’s American site. The deal eventually lead to the sales of Nike shoes on Amazon surging way past the sale of the same shoes sold at Foot Locker.
According to the latest news, Amazon is even planning to launch its own line of athletic clothing. Apparently, they’re trying to accomplish this by joining forces with some of the biggest sports brands in the world. If this turns out to be true, Amazon could possibly take over even more of the market share.
It remains to be seen if companies such as Foot Locker will be able to keep up with these technological advances, but considering the latest performances, nothing would surprise us.