Leading sports shoe chain Foot Locker Inc on Thursday reported a 14 per cent hike in second quarter net earnings on higher sales and said it is working with Nike Inc on a new footwear line.

The New York-based operator of more than 3,600 stores in 16 countries posted earnings for the 13 weeks to August 2 of $37 million, or 25 cents a share, excluding special items, compared with a profit of $33m, or 22 cents, last year.

Sales climbed 3.5 per cent to $1.123 billion from $1.085bn last year but same-store sales fell 4.4 per cent.

During the quarter, the company opened 38 stores, remodelled/relocated 118 stores and closed 30 stores, with the new openings including its debut in Portugal and New Zealand.

President and CEO, Matthew Serra, said: "The company's sales trend significantly improved in late July and this has continued into the third week of August.

"We expect our average price points to stabilise later in the third quarter as we anniversary against the current fashion trend of lower-priced classic footwear.

"Additionally, we expect our gross margin rate to continue to be favourable to last year due to our somewhat tempered promotional posture in the US. Therefore, we currently expect third quarter earnings of 31 to 33 cents per share, in line with analysts' estimates."

The company also revealed it is working with sportswear giant Nike Inc on a new line due to be launched at Christmas.

It said the new collection will include "retro" looks dating back 20 years and cost between $80 and $100.