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Earnings Analysis: 
Foot Locker Profits Jump
Author: George Shopov
123jump.com



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Foot Locker Inc., the U.S. leading athletic footwear retailer, posted Thursday a 19% increase in its quarterly earnings, bolstered by solid growth in sales and improved cost management.

 
Foot Locker, Inc. (FL: chart) announced Thursday quarterly earnings that advanced 19% from a year earlier, boosted by sales increase. The U.S. top athletic footwear retailer posted net income of $74 million, or 47 cents a share, for the third quarter of fiscal 2004, compared with net income of $62 million, or 41 cents a share, for the same period a year ago. The earnings met Wall Street’s consensus forecast. For the quarter ended October 30, Foot Locker recorded sales of $1.37 billion, which represents a 14% growth from prior-year sales of $1.19 billion. Comparable-store sales inched up 1.2%. The New York-based company said its cost controls also contributed for the improved results. For the first nine months, net earnings came to $204 million, or $1.31 per share, on sales of $3.8 billion. For the 2003 corresponding period, earnings were $136 million, or 92 cents per share, on sales of $3.4 billion.

Looking ahead, Foot Locker said it expects its fourth-quarter earnings per share to increase by 10% to 20% from the year-ago figure of 47 cents per share.

Company shares closed Thursday at $24.00, down 12 cents, or 0.50%.

Gap Inc. (GPS: chart) said after the bell Thursday that its quarterly income climbed 1% from last year, aided by improved profit margins. The San Francisco-based apparel retailer posted a profit of $265 million, or 28 cents per share, for its third quarter, against a profit of $263 million, or 28 cents per share, a year ago. The results matched the average analysts’ estimate. Net sales in the quarter were up 1% to $4.0 billion, but same-store sales slipped 1% from a year earlier.

The stock dipped 2.00% on Thursday to $22.54. Gap shares dropped 4 cents to $22.50 in after-market trade.

Autodesk, Inc. (ADSK: chart) of San Rafael, California, reported Thursday that its third-quarter profits rocketed up to $74.1 million, or 60 cents per share, from year-ago profits of $22.6 million, or 20 cents per share. The developer of computer-aided design software said results were fuelled by solid revenue growth and a tax benefit. Excluding items, income totaled $47.7 million, or 38 cents per share, surpassing the mean analysts’ estimate of 34 cents per share. Quarterly revenue jumped 28% from last year to $300.2 million, driven by strong demand for the company’s AutoCAD family of products.

Company shares gained 33 cents to $60.65 at market close Thursday. The stock surged 6.73% to $64.73 in the extended session.

Novell, Inc. (NOVL: chart) posted Thursday fourth-quarter net income of $13 million, or 3 cents per share, bouncing back from a net loss of $109 million, or 29 cents per share, for the 2003 equivalent. The Waltham, Massachusetts-based maker of computer networking software cited strength in its SUSE LINUX Enterprise Server business and the weak dollar as main factors for the turnaround. On a pro forma basis, profits amounted to $23 million, or 6 cents per share, up from $19 million, or 5 cents per share, last year. Analysts had called for a profit of 5 cents per share. Revenue in the quarter rose to $301 million from $287 million.

The stock soared 4.55% to close Thursday at $7.13. Novell shares shed 18 cents to $6.95 in after-hours trading.

Marvell Technology Group Ltd. (MRVL: chart) of Sunnyvale, California, announced Thursday a huge rise in its quarterly earnings, driven by record revenues. The chipmaker rolled out income of $43.6 million, or 14 cents per share, for its third quarter, in contrast to income of $12 million, or 4 cents per share, generated a year ago. Excluding items, the company earned 22 cents per share in the quarter, up from 12 cents per share, last year, and a penny ahead of the mean analysts’ forecast. Quarterly revenue totaled $317.6 million, a 48% surge from $215.3 million.

Marvell shares closed Thursday up 31 cents, or 1.03%, at $30.35. The stock soared 6.43% to $32.30 in extended trade.

Williams-Sonoma, Inc. (WSM: chart) on Thursday turned in net earnings of $28.5 million, or 24 cents a share, for its fiscal third quarter, up 19% from net earnings of $23.9 million, or 20 cents a share, for the same period of the previous year. The San Francisco-based home products retailer topped by a penny a share the mean analysts’ forecast. Williams-Sonoma attributed the results to higher revenues, which climbed 14% in the quarter to $722.8 million.

The stock plunged 5.96% to $36.77 at market close Thursday.

Limited Brands, Inc. (LTD: chart) of Columbus, Ohio, said Thursday that its quarterly income slumped 40% from a year earlier, when results were fuelled by more one-time gains. The fashion retailer reported a net profit of $78.3 million, or 16 cents a share, for its third quarter, down from $129.7 million, or 25 cents a share, for the 2003 corresponding quarter. Third-quarter profit before items was $49.7 million, or 10 cents a share, against $44.3 million, or 8 cents a share, a year ago. The results matched analysts’ expectations.

Company shares inched down 5 cents to close Thursday at $27.05.

Hibbett Sporting Goods, Inc. (HIBB: chart) announced Thursday that its third-quarter earnings increased 17% to $6.3 million, or 26 cents per share, from year-ago earnings of $5.4 million, or 23 cents per share, on higher sales. Analysts expected the Birmingham, Alabama-based sports retailer to earn 24 cents per share, on average. Quarterly sales improved to $92.1 million from $78.4 million, with same-store sales rising 5.4%.

The stock dropped 2 cents on Thursday to $22.75. Company shares edged up 9 cents to $22.84 in after-market trade.

The Walt Disney Company (DIS: chart) posted Thursday quarterly profits that rose 24% from last year, buoyed by strong performance at its cable channels and ABC Television network. The Burbank, California-based media conglomerate rolled out net income of $516 million, or 25 cents per share, for its fiscal fourth quarter, in contrast to net income of $415 million, or 20 cents per share, for the 2003 comparable period. The earnings were well ahead of Wall Street’s consensus estimate of 18 cents per share. Revenue in the quarter climbed 8% to $7.54 billion.

Company shares were down 19 cents to $26.37 at market close Thursday. The stock rose 1.25% to $26.70 in extended-hours trading.
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