Foot Locker (NYSE:FL) shares traded sharply lower at Friday’s open after the company reported worse-than-expected second-quarter results.
The company reported second-quarter earnings of 66 cents per share, which missed the analyst consensus estimate of 67 cents. This is a 12% decrease over earnings of 75 cents per share from the same period last year.
Foot Locker reported quarterly sales of $1.774 billion, which missed the analyst consensus estimate of $1.82 billion. This is a 0.45% decrease over sales of $1.782 billion the same period last year.
Net income for the Company's second quarter of 2019 proved to be $60 million, or $0.55 per share, compared to net income of $88 million, or $0.75 per share in the corresponding prior-year period.
Included in these results are: 1) a $13-million charge related to the lease termination costs incurred in connection with the closure of certain SIX:02 locations, 2) a $1-million charge recorded in connection with the Company's pension matter, and 3) a $2-million tax charge in connection with U.S. tax reform.
According to CEO Richard Johnson, "While our results in the second quarter did come in at the low end of our expectations, we saw improvement in our performance as we moved through each month of the quarter.
"We remain deeply connected with sneaker and youth culture, and believe this positive momentum exiting the quarter has us well positioned for the back-to-school period and beyond. Further, our team continues to make meaningful progress against our long-term strategic imperatives."
Shares collapsed $4.43, or 10.6%, to $37.50
