Foot Locker: quarterly results disappoint, growth slows
(CercleFinance.com) - US athletic footwear retailer Foot Locker has disappointed the market with lower-than-expected results on Friday, sending its shares down over 9% in pre-market trading.
The sporting-goods retailer's net profit for the first quarter ended 4 May rose to 172 million dollars, or 1.52 dollar per share, compared to 165 million dollars, or 1.38 dollar per share, a year ago.
Its sales increased by 2.6% to 2.08 billion dollars, with comparable-store sales up 4.6%, it said. In comparison, fourth-quarter comparable store sales rose 9.7%.
In its statement, the New York-based company said that it is on target to reach its previously provided full-year outlook, in terms of both sales, gross margin and expenses.
However, earnings per share are now expected to be up high-single digits for the financial year 2019, based on the share repurchase activity.
Foot Locker previously expected a double-digit increase in earnings per share this year.
After this report, Foot Locker shares are down 9% in pre-market trading on Friday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.