For the three months ended Jan. 31, the loss was $126 million, or 82 cents a diluted share, against net income of $72 million, or 46 cents, in the year-ago quarter. Excluding charges for impairment, store closings and other factors as well as discontinued operations, EPS for the quarter was 24 cents, 50 percent above the analyst consensus estimate of 16 cents provided by Yahoo Finance.
The company said when preparing 2008 results it became aware of errors in calculation for its income tax expense for the final quarter and full year of 2007. Income and earnings per share for both periods for 2007 have decreased by $9 million, or 6 cents a share. The adjustments were was reflected in the company’s statement on earnings late Wednesday and also will be reflected in its full year 2008 report in its regulatory filing, or Form 10-K, with the Securities and Exchange Commission. That filing is expected on or before April 1, 2009.
Quarterly sales were down 11.1 percent to $1.32 billion from $1.48 billion, with comparable-store sales declining 7.3 percent.
“Despite the difficult selling climate, we generated a 60 percent increase in our adjusted income from continuing operations per share versus the fourth quarter of last year, due primarily to a significantly increased gross margin rate and lower operating expenses,” said Matthew D. Serra, Foot Locker, Inc.’s chairman and chief executive officer, in a statement.
For the year, the loss was $81 million, or 53 cents a diluted share, against income of $38 million, or 24 cents, in 2007. Sales dipped 3.7 percent, to $5.24 billion, and were off 3.2 percent on a same-store basis.