Foot Locker Inc. forecast earnings under Wall Road’s expectations because it struggles to lure budget-conscious customers who proceed to curb spending.
The sneaker retailer expects full-year revenue of $1.35 to $1.65 a share, whereas analysts had been searching for $1.72, on common. Comparable retailer gross sales are anticipated to develop 1 % to 2.5 %, barely lacking estimates on the midpoint of that vary.
Foot Locker’s shares had been up round 1 % in premarket buying and selling in New York. The corporate’s inventory is down greater than 20 % this yr by Tuesday’s shut.
Weaker shopper demand and a shift towards customers searching for the very best offers harm efficiency at Foot Locker, which operates greater than 2,400 shops. Chief government officer Mary Dillon stated in a press release that the corporate will proceed to face uncertainty resulting from promotional pressures, particularly within the first half of the yr.
Dillon, who joined the corporate in 2022, has seemed to strengthen the enterprise largely by renovating its shops — the corporate revamped greater than 400 places in 2024. She can also be leaning right into a buyer loyalty program and overhauling digital operations.
Comparable retailer gross sales, a key retail metric, rose 2.6 % within the fourth quarter, higher than analysts anticipated.
The New York-based firm plans to maneuver its headquarters to Florida by the top of this yr as part of its efforts to chop prices and enhance efficiency.
By Fact Headlam
Study extra:
Foot Locker Plummets as Buyers Unimpressed by Progress
Foot Locker Inc. exceeded gross sales expectations with a 2.6 % acquire and $1.9 billion in income, however traders had been underwhelmed by the unchanged annual gross sales forecast, resulting in a 12 % drop in shares.
