Foot Locker lowers outlook

US: Foot Locker lowers outlook as swings to Q3 profit

By just-style.com | 21 November 2008

New York-based specialty athletic retailer Foot Locker Inc today (21 November) lowered its full-year outlook after better international sales failed to offset a slowdown in the US.

The retailer, which operates 3,714 stores in North America, Europe and Australia, swung to a third quarter profit after last year's quarter was hit by store closure costs of $66m.

Net income for the three months to 1 November was $24m mllion, or $0.16 per share, compared with net loss of $33m, or $0.22 per share, last year.

Eliminating the impairment charges and store closing expenses, third quarter profit was $27m, or $0.18 per share, in 2008 versus $33m, or $0.21 per share, in 2007.

Sales fell 3.5% to $1,309m from $1,356m last year, with same-store sales down 1.7%.

Matthew D Serra, Foot Locker's chairman and chief executive officer, said: "The economic slowdown in the United States, particularly during the months of September and October, was offset in part by our ability to improve our sales and earnings in our international businesses."

He added that division profit in the three international businesses - Foot Locker Europe, Foot Locker Canada and Foot Locker Asia Pacific - each rose during the quarter.

In its guidance update, the company lowered its net income projections for fiscal 2008, excluding impairment charges, from $0.70 to $0.85 per share to a range of $0.50 to $0.63 per share.

Sectors: Finance, Footwear, Retail

Companies: Foot Locker