Foot Locker posted an earnings beat Friday when the company released its third quarter financial results, but comments made by CEO Richard Johnson about NBA star Stephen Curry’s footwear line caused stocks of Under Armour to take a dive.
During the company’s earnings call, Johnson reported that Under Armour’s Curry-branded shoes, the 2.0 and 2.5 “performed well,” but that the Curry 3.0, launched on Oct. 27, “started off a bit slower than the two previous models,” though he acknowledged that it was still early days.
For finicky investors, it was enough to cause Under Armour shares to plunge by as much as 5 percent during Friday trading. Shares of Foot Locker also briefly fell but recovered to finish the day up just under 1 percent.
The New York-based retailer had a very successful Q3, with net earnings up 96 percent over the same period last year to $157 million ($1.17 per share). This was compared with net earnings of $80 million (57 cents per share) during the same period last year. Adjusted EPS of $1.13 topped Wall Street’s expected EPS of $1.10. Revenue was also up 6 percent year-over-year.
Same-store sales rose 4.7% during the quarter, in-line with analyst expectations. Foot Locker opened 21 new stores during Q3, though this was offset by the closure of 28 stores.
The retailer maintained its guidance for the rest of the year of double-digit EPS growth and mid-single-digit comparable-store sales gains. Foot Locker CFO Lauren Peters said he feels confident about the upcoming holiday season.
“Our inventory is fresh and well-positioned as we prepare for the important holiday selling season, and we remain well on track to achieve our annual guidance,” he said.