Nov 17 (Reuters) - Athletic footwear retailer Foot Locker Inc's quarterly results beat market expectations for the seventh straight quarter on stronger sales of its running shoes, sending the company's stock up about 5 percent in extended trade. The retailer, which sells branded shoes of Nike Inc, Reebok and Adidas AG, has been seeing steady gains in margins and sales after the closing of about 650 underperforming stores over the last three years. KEY POINTS: Q3 2011 I/B/E/S Q3 2010 Revenue $1.39 bln $1.37 bln $1.28 bln Net income $66 mln -- $52 mln GAAP EPS $0.43 $0.39 $0.33 * Same-store sales rise 7.4 percent. * Gross margins increased 220 basis points. * Merchandise inventory at the end of the third quarter remained flat at $1.20 billion. MARKET REACTION / COMMENTARY: * Foot Locker shares, which have risen more than 13 percent from the beginning of this year, were up 5 percent at $22.99 on Thursday in extended trade. They closed at $21.82 on the New York Stock Exchange.