Nov 20, 2009
Foot Locker results miss estimates, shares fall
Nov 20, 2009
SAN FRANCISCO, Nov 19 (Reuters) - Foot Locker Inc (FL.N) on Thursday 19 November reported quarterly results that fell short of Wall Street's expectations, hurt by lower-than-expected U.S. sales, and shares of the athletic shoe retailer fell in after-hours trade.
The company reported a loss of $6 million, or 4 cents per share, for its third quarter, ended on Oct. 31, compared with a profit of $24 million, or 16 cents per share, a year earlier.
Excluding charges from writing down assets in its U.S. operations, Foot Locker earned 10 cents per share. Analysts, on average, were expecting 13 cents per share, according to Thomson Reuters I/B/E/S.
Quarterly sales fell 7.3 percent to $1.21 billion, while comparable-store sales declined 8.2 percent.
Chief Executive Ken Hicks said the retailer, which operates roughly 3,600 stores around the world, experienced lower-than-expected sales in its U.S. operations, although sales trends improved in Europe throughout the quarter.
Also on Thursday 19 November sporting goods retailer Hibbett Sports Inc (HIBB.O) posted a stronger-than-expected quarterly profit and raised its fiscal 2010 earnings outlook..
But Dick's Sporting Goods Inc (DKS.N) forecast fourth-quarter earnings below market estimates, citing increased promotional activity in California and the shift of cold weather product sales into the third quarter.
Foot Locker's sales have been hurt by weak mall traffic and a move by consumers away from athletic shoes in the downturn. In June the retailer named Hicks to the role of CEO. He was formerly president and chief merchandising officer of JC Penney Co Inc (JCP.N)
Foot Locker's shares fell 59 cents, or 5.6 percent, to $10 in after-hours trade, after dropping 4.6 percent on the New York Stock Exchange to $10.59. (Reporting by Nicole Maestri; Editing by Andre Grenon and Steve Orlofsky)
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