On Friday, before the market opened, Foot Locker (NYSE:$FL) reported its quarterly results. And there’s only one word to describe the quarter: disappointing. The New York City-based retailer missed expectations by a wide margin, causing the shares to fall by 26%.
Foot Locker reported an adjusted EPS of 62 cents on revenue of $1.701 billion for quarter two. For perspective, analysts surveyed by Thomson Reuters had forecast the company to report EPS of 90 cents on sales of $1.8 billion. Further, same-store sales – a metric Wall Street closely watches – dropped 6% year over year. Analysts surveyed by StreetAccount called for an increase of 1%.
According to CEO Richard Johnson, “sales of some recent top styles fell well short of our expectations and impacted this quarter’s results. At the same time, we were affected by the limited availability of innovative new products in the market.”
Johnson added, “We believe these industry dynamics will persist through 2017, and we expect comparable sales to be down three to four percent over the remainder of the year.”
Due to Foot Locker’s dismal results and outlook, Nike (NYSE:$NIKE) and Under Armor (NYSE:$UAA) dropped 3.5% and 2.3% in pre-market trade Friday.
Going into Friday’s trading session, shares of Foot Locker had already declined almost 33% this year.
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