By Christiana Sciaudone
Investing.com -- Foot Locker (NYSE:FL) fell 3.2% despite fabulous earnings that put analyst estimates to shame.
Third quarter earnings per share of $1.21 beat the estimated 53 cents on sales of $2.11 billion versus the expected $1.89 billion. Comparable-store sales for the period increased by 7.7%, and sales grew 9%, while gross margin decreased to 30.9% from 32.1% a year earlier.
Chief Financial Officer Lauren Peters urged caution for the fourth quarter, citing uncertainty around the effects of the pandemic. Additionally, higher than normal markdown rates may be possible alongside elevated freight costs.
"Although the back-to-school selling season kicked in later than usual due to COVID-19-related delays, momentum built as the quarter progressed," said Richard Johnson, chairman and chief executive officer.
Foot Locker has bounced back over the past two quarters after a tough first quarter saw the beginning of the pandemic and the shutting down of stores. The stock got hit hard along with the rest of the market at the start of the coronavirus pandemic, with shares dropping by more than half. They have now recovered to pre-pandemic levels.