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FOOT LOCKER , INC . Foot Locker , Inc. Reports 2021 Second Quarter Results August 20 , 2021 - Second Quarter Comparable Store Sales Increased 6.9 % - Second Quarter Net Income of $ 430 Million , or $ 4.09 Per Share - Non - GAAP Net Income of $ 233 Million , or $ 2.21 Per Share Gross Margin Improved by 920 Basis Points to 35.1 % NEW YORK , Aug. 20 , 2021 / PRNewswire / -- Foot Locker , Inc. ( NYSE : FL ) , the New York - based specialty athletic retailer , today reported financial results for its second quarter ended July 31 , 2021 . Second Quarter Results The Company reported net income of $ 430 million , or $ 4.09 per share , for the 13 weeks ended July 31 , 2021 , as compared with net income of $ 45 million , or $ 0.43 per share , for the corresponding prior - year period , and $ 60 million , or $ 0.55 per share , earned in the second quarter of 2019 . On a non - GAAP basis , the Company earned $ 2.21 per share , an increase of over 200 % from the $ 0.71 per share in the second quarter of 2020 and the $ 0.66 per share earned in the second quarter of 2019. Excluded from these numbers are gains related to minority investments and impairment charges , as detailed below . Second quarter comparable - store sales increased by 6.9 % . Total sales increased by 9.5 % , to $ 2,275 million in the second quarter of 2021 , compared with sales of $ 2,077 million in the same period last year . Excluding the effect of foreign exchange rate fluctuations , total sales for the second quarter increased by 7.3 % . As compared to the second quarter of 2019 , total sales increased 28.2 % . " Our strong performance this quarter reflects the health of our category , the deep engagement we have with our customers , and the strategic nature of our relationships with our vendor partners , " said Richard Johnson , Chairman and Chief Executive Officer . " This quarter reflects strong results in our women's and kids ' footwear business along with broad demand for our apparel and accessories offerings , which combined with more limited promotional activity , led to the outstanding top and bottom line results . " " Many of the trends we saw in the first quarter continued into the second quarter , with the combination of robust demand and fresh and lean inventory driving meaningfully lower levels of promotional activity and resulting in a gross margin of 35.1 % , compared to the 25.9 % in the prior year period , " added Andrew Page , Executive Vice President and Chief Financial Officer . Year - To - Date Results For the first six months of the year , the Company posted a net income of $ 632 million , or $ 6.02 per share on a GAAP basis , compared to a net loss of $ 65 million , or $ 0.62 per share , for the corresponding period of 2020. On a non - GAAP basis , earnings per share for the six - month period totaled $ 4.17 , compared to $ 0.05 per share in the prior year period in 2020. Year - to - date sales were $ 4,428 million , an increase of 36.1 % compared to the sales of $ 3,253 million in the corresponding 6 - months of 2020. Year - to - date , comparable store sales increased 33.4 % , while total year - to - date sales , excluding the effect of foreign currency fluctuations , increased by 33.4 % . Non - GAAP Adjustments During the second quarter of 2021 , the Company recorded adjustments to earnings , which are detailed below in the accompanying reconciliation of GAAP to non - GAAP results . The items included in part : 1 ) $ 303 million of primarily non - cash gains related to minority investments , of which $ 290 million was related to a higher valuation for the Company's investment in GOAT , and 2 ) a $ 39 million charge primarily due to the impairment review of Footaction . Financial Position At July 31 , 2021 , the Company's merchandise inventories were $ 1,081 million , 9.5 % lower than at the end of the second quarter last year . Using constant currencies , inventory decreased by 10.4 % . At quarter - end , the Company's cash and cash equivalents totaled $ 1,845 million , while the debt on its balance sheet was $ 112 million . The Company's total cash position , net of debt , was $ 1,733 million , higher than the same period last year by $ 484 million . During the second quarter of 2021 , the Company spent $ 8 million to repurchase 125,000 shares , returning a total of $ 29 million to shareholders through its share repurchase program and dividends . In addition , the Company invested $ 36 million in its store fleet , digital capabilities , supply chain , and other infrastructure . The Company also announced two strategic acquisitions , WSS and atmos , that total $ 1,110 million and are expected to close late in the third quarter of 2021 . " Our approach to capital allocation remains focused on investing in growth opportunities while also returning cash to shareholders through our quarterly dividend and opportunistic share repurchase program , " said Richard Johnson . " The 50 % increase to our quarterly dividend rate that we announced earlier this week reflects our Board's confidence in our business and financial strength . " Financial Outlook Andrew Page added , " we exited the quarter with positive momentum and are cautiously optimistic about the outlook for the back - half of 2021 . Recognizing we are still operating in an uncertain environment due to COVID - 19 , we continue to keep a close eye on the business , including temporary store closures and supply chain challenges , and we remain disciplined with expense management . " The Company will provide additional commentary on its financial outlook for fiscal 2021 on its live conference call . Store Base Update During the second quarter , the Company opened 16 new stores , remodeled or relocated 23 stores , and closed 57 stores . As of July 31 , 2021 , the