Foot Locker Tumbles After Surprise Drop in Same-Store Sales
(Bloomberg) -- Foot Locker Inc. shares fell as much as 12% in premarket trading after the athletic-goods retailer missed analysts’ expectations for same-store sales and overall revenue.
- Comparable-store sales declined 2.7% in the fourth quarter ended Jan. 30, Foot Locker said Friday, compared with analysts’ estimate of a 3.5% increase as compiled by Consensus Metrix. Revenue of $2.19 billion missed the expectation of $2.29 billion compiled by Bloomberg.
- See more details.
- Foot Locker cited “the challenging macro backdrop of Covid-related store closures and supply-chain congestion” in its statement. It said more than 10% of its locations are closed due to the pandemic.
- The disappointing results come as Foot Locker is facing off against possible takeover interest from its largest shareholder, Czech billionaire Daniel Kretinsky’s Vesa Equity Investment S.a.r.l. The retailer adopted a poison-pill defense in December.
- The company said it couldn’t provide 2021 guidance because of pandemic uncertainty.
- Foot Locker shares fell as low as $46.35 as of 7:26 a.m. in New York. The stock is up 30% this year through Thursday and rose 3.7% last year.
- Read the statement.
- See Foot Locker estimates.
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