Foot Locker soars after beating on sales and profits

AP/Bennett Raglin

Consumer shopping at House of Hoops during the Foot Locker 34th Street Grand Opening on Tuesday, Aug. 30, 2016 in New York.

• Foot Locker beat on both the top and bottom lines in the third quarter and its comparable sales topped Wall Street estimates.
• Shares jumped as much as 12.7% after Tuesday's closing bell following the announcement.
• Watch Foot Locker trade live.

Foot Locker rallied by as much as 12.7% after Tuesday's closing bell after the company reported better-than-expected earnings for the third quarter.

The shoe retailer said it earned $0.95 a share on an adjusted basis, topping the $0.92 that was expected by analysts according to Bloomberg data. Its sales came at $1.86 billion, beating the $1.84 billion that was estimated by Wall Street. Meanwhile, its same-store sales jumped 2.9% year-over-year, while analysts were expecting a 2% increase.

"Our accelerating comparable sales and improving bottom line reflect the strategic partnerships with our vendors, as well as our efforts to inspire and empower youth culture and create deeper connections with local communities," said CEO Richard Johnson in the press release.

"We believe we are well positioned to produce even stronger results in the all-important holiday selling season and the fourth quarter overall."

Shares dropped 5.68% in regular trading before the results amid broader weakness in markets and were up 8% this year through Tuesday's official close.

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