Foot Locker shares tumble 15% after profit and sales fall short of estimates

By Ciara Linnane Industries MarketWatch Pulse

(REUTERS)

Foot Locker Inc. (FL) shares tumbled 15% in premarket trade Friday, after the sports apparel company missed profit and sales estimates for the second quarter.

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The company said it had net income of $51 million, or 39 cents a share, in the quarter, compared with $127 million, or 94 cents a share, in the year-earlier period. Adjusted per-share earnings came to 62 cents, well below the 90 cents FactSet consensus.

Sales fell 4.4% to $1.701 billion, also below the FactSet consensus of $1.801 billion. Same-store sales fell 6%, compared with a FactSet consensus of a gain of 0.8%.

"Sales of some recent top styles fell well short of our expectations and impacted this quarter's results," Chief Executive Richard Johnson said in a statement, describing the results as disappointing.

"At the same time, we were affected by the limited availability of innovative new products in the market. We believe these industry dynamics will persist through 2017, and we expect comparable sales to be down three to four percent over the remainder of the year."

The company is working with vendors to identify new trends more quickly and is reviewing its capex priorities and mulling spending cuts, he said. Shares are down 33% in 2017, while the S&P 500 has gained 8.5%.

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