Foot Locker stock drops after report of falling revenues

Foot Locker shares slid about 4 percent Sunday morning after the retailer said that its fiscal third-quarter earnings fell short of analyst expectations. The company, which sells athletic shoes and clothes in more than 3,700 stores across North America, said that it earned 97 cents per share compared to estimates of $1.02, according to Reuters.

Foot Locker said that same-store sales declined 6.2 percent in the period, which ended on March 3. Wall Street analysts had been projecting same-store sales of 4.1 percent. The company also posted flat revenue for the quarter.

In an interview with CNN, Executive Chairman Richard Johnson acknowledged that the company was going through “an unprecedented shift” in the retail industry, but maintained that Foot Locker was working on the issues. He told CNN’s Laurie Segall that the company “didn’t expect everything to happen in less than a year.”

The retailer said that it expects same-store sales to increase in the range of 3 to 4 percent for the full year, but said it will give a higher-than-expected profit forecast when it releases its full earnings report on April 25.

Foot Locker also announced that it would close more than 100 stores this year. In 2017, the company announced plans to shut down between 150 and 180 stores in North America, according to CNN.

Read the full story at CNN.


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