The shoe retailer keeps investors on their toes with a massive drop in earnings growth forecast to $2 a share from $3.35 a share.
Shares of Foot Locker (ticker: FL) fell sharply on Friday after money managers pulled an exit sprint on the shoe maker following its fiscal year guidance. The stock plunged as much as 27% during the session on the news that Foot Locker is drastically slashing its outlook just a couple of months after it was introduced.
A consumer slowdown forced the athletic apparel retailer to reduce its expected earnings for the year to $2 a share from $3.35 a share. The step down came after Foot Locker published underwhelming first-quarter figures. Earnings per share came in at 70 cents vs 81 cents expected. Revenue landed at $1.93bn vs $1.99bn expected.
For the quarter ended April, Foot Locker reported net income of $36mn, or 38 cents a share, compared with $132mn, or $1.37 a share, from the year-ago quarter. Looking ahead, the company projects lackluster consumer demand to continue into the current quarter.
