Foot Locker (NYSE:FL) slashed its full-year guidance on Wednesday after reporting a rough set of quarterly results that could be a warning sign for its largest brand partner Nike (NYSE:NKE).
The sneaker giant fell short of Wall Street’s expectations on the top and bottom lines and blamed the miss on soft consumer demand and elevated promotions across the marketplace. The company also saw “softness” at Nike, CEO Mary Dillon said.
“There are definitely some brands that we’re seeing comp gains, and then, you know, we’re also contending with some more recent softness out of Nike,” said Dillon. “Given their size and scale, it kind of makes sense that it would have an impact.”
Foot Locker shares dropped $4.13, or 17.1% to $20.04 after it posted the results.
Earnings per share proved 33 cents adjusted vs. 41 cents expected, on revenue of $1.96 billion vs. $2.01 billion expected
In the three months ended Nov. 2, Foot Locker swung to a loss of $33 million, or 34 cents per share, compared with earnings of $28 million, or 30 cents per share, a year earlier. Excluding one-time items related to impairment charges for its atmos brand and other expenses, Foot Locker reported earnings of $31 million, or 33 cents per share.
