Why Foot Locker's Win Bolsters Outlook for Dick's Sporting Goods
Foot Locker (NYSE: FL) put its best foot forward in the stock market on Friday, Aug. 20., after reporting its fiscal second-quarter results and stomping on Wall Street consensus expectations at both the top and bottom lines. The shoe and sportswear company's share price was up more than 7% when trading closed for the weekend and rose after hours, too. However, its win also triggered a surge in the share price of Dick's Sporting Goods (NYSE: DKS) and a flurry of analyst optimism ahead of the sporting goods retailer's Aug. 25 earnings report.
Here's why the outlook appears sunny for both companies:
For the its Q2 period ended July 31, 2021, Foot Locker took a big step up over last year's performance. Its $2.3 billion in revenue jumped nearly 10% year over year, and earnings per share (EPS) rose nearly tenfold from $0.43 to $4.09. The strength of its gains caught major analysts unaware, with EPS coming in $3.10 higher than expected and revenue outpacing their expectations by $190 million.
Source Fool.com
