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Foot Locker (NYSE:FL) noticed its shares tumble greater than 9% in premarket buying and selling Wednesday after the corporate lower its annual earnings and gross sales forecast.
For the fiscal third quarter, the footwear retailer posted earnings per share (EPS) of $0.33, lacking analyst expectations of $0.42.
Income for the quarter totaled $1.96 billion, additionally falling wanting the consensus estimate of $2.02 billion.
Comparable gross sales grew by 2.4%, under the anticipated 2.76%.
Gross margin expanded by 230 foundation factors year-over-year.
“Our crew’s continued concentrate on execution drove optimistic comparable gross sales developments and significant gross margin growth within the quarter,” mentioned Mary Dillon, President and Chief Government Officer of Foot Locker.
“Nonetheless, our third quarter top- and bottom-line efficiency fell wanting our expectations. Shopper spending developments softened following the height Again-to-College interval in August, and the promotional setting was extra elevated than anticipated.”
For the fourth quarter of 2024, Foot Locker anticipates EPS within the vary of $0.70 to $0.80, decrease than the $0.95 anticipated by analysts.
For the total yr, the corporate forecasts EPS of $1.20 to $1.30, down from the earlier outlook of $1.50 to $1.70, and lacking the consensus projection of $1.53.
The corporate now expects full-year gross sales to say no between 1% and 1.5%, a downward revision from the prior steerage of a spread between -1% and +1%.
Comparable gross sales for the yr are projected to extend by 1% to 1.5%, in comparison with the sooner forecast of 1% to three% and the consensus estimate of 1.64%.
Foot Locker additionally lower its gross margin steerage for the total yr, anticipating it to fall between 28.7% and 28.8%, down from the earlier vary of 29.5% to 29.7% and under the consensus estimate of 29.6%.
