Shares for Foot Locker Inc. are down 11.5% ahead of the opening bell after the company logged another quarterly earnings miss.
During Q2, the New York-based specialty athletic retailer saw profits drop 31.8% to $60 million, or 66 cents per share — below analysts’ expectations of 67 cents a share. Same-store sales climbed 0.8%, but revenues fell 0.4% to $1.77 billion, versus consensus bets of $1.82 billion.
“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,” said president and CEO Richard Johnson. “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.”
The results come at a heavy investment period for the company, which opened early this month a new digitally driven store concept in collaboration with sportswear giant Nike. The new “Power Store” in New York’s Washington Heights neighborhood marks the third of its kind in the United States for the retailer — two other outposts are in Philadelphia and Detroit — and is part of Foot Locker’s larger push to build closer connections with local communities.
The firm also introduced its innovation and incubation initiative dubbed Greenhouse to help fuel emerging brands — a concept that followed its streak of investments in apparel and footwear startups, including Rockets of Awesome and minority-focused design school Pensole Footwear Design Academy. It has continued the process of trimming its physical footprint, announcing plans to close 165 stores internationally this year on the heels of its blockbuster fourth-quarter earnings report.
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