Foot Locker stomped by weaker holiday demand
Comparable-store sales fell 1.6%
Foot Locker Inc. said its profit fell along with revenue for the fourth quarter as it faced softer demand during the holiday season.
The sporting-goods retailer on Friday posted net income of $141 million, or $1.34 a share, compared with $158 million, or $1.39 a share in the comparable quarter last year.
Adjusted earnings were $1.63 a share for the quarter. Analysts polled by FactSet were looking for earnings of $1.58 a share on an adjusted basis.
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"While we had leading positions in key on-trend footwear styles, this was not enough to offset softer than expected demand during the compressed holiday season, a very promotional marketplace for apparel, and tougher launch comparisons," Chairman and Chief Executive Richard Johnson said in prepared remarks.
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Revenue for the quarter fell to $2.22 billion from $2.27 billion in the prior year. Analysts polled by FactSet were looking for $2.24 billion.
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Comparable sales, a key metric for retailers that measures sales at stores open at least a year, fell 1.6% for the quarter, more than the 1.1% decline analysts had expected.
During the quarter, the company opened 32 stores, remodeled or relocated 66 stores and closed 63 stores. It had 3,129 stores in 27 countries in North America, Europe, Asia, Australia and New Zealand as of Feb. 1.