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.

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