Foot Locker Stock Stumbles on Surprise Loss, Slashed Guidance | Global News Avenue

foot cabinet (FL) shares plunged after the company reported an unexpected third-quarter loss and lowered its full-year forecast before trading opened on Wednesday.

The sneaker retailer reported a loss of $33 million, or 34 cents a share, compared with a profit of $28 million, or 30 cents a share, a year ago. Analysts tracked by Visible Alpha expect profits to rise to $37 million year over year. Revenue was $1.96 billion, down 1.4% year-over-year and above Wall Street expectations.

CEO Mary Dillon said the loss was due to “softer consumer spending trends following the peak back-to-school period” and a “better-than-expected promotional environment.” Selling, general and administrative expenses (SG&A)Including marketing expenses, it increased 8% year-on-year to $482 million.

Foot Locker’s full-year forecast has also become more conservative. Sales are now expected to fall 1.5% to 1% in 2023 from $8.15 billion, compared with the previous range of 1% decline to 1% growth. After adjustment earnings per share Prices are expected to be between $1.20 and $1.30, down from $1.50 to $1.70. Analysts expect the stock to price at $1.55.

Foot Locker shares fell as much as 13% on Wednesday morning, and have fallen more than 30% in 2024.