Foot Locker Inc. (NYSE: FL) missed revenue and earnings estimates for the second quarter of 2019, sending shares tumbling over 10% in premarket hours on Friday. The consensus forecast was for earnings of $0.67 per share on revenue of $1.83 billion.
Total sales of $1.77 billion was down 0.4% from the same period last year. Excluding foreign currency impacts, sales rose 0.8%. Comparable store sales increased 0.8%.
Net income was $60 million, or $0.55 per share, compared to $88 million, or $0.75 per share, last year. Adjusted net income was $72 million, or $0.66 per share.
Richard Johnson, President and CEO, said, “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.”
During the quarter, Foot Locker opened 10 new stores, remodeled or relocated 35 stores, and closed 37 stores. As of August 3, 2019, the company operated 3,174 stores in 27 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 123 franchised Foot Locker stores were operating in the Middle East, as well as 10 franchised Runners Point stores in Germany
At quarter-end, merchandise inventories were $1.22 billion, 2.2% lower than at the same period last year. Cash totaled $939 million, while debt on the balance sheet was $123 million.
The company expects to deliver a mid-single digit comparable sales gain and high-single digit adjusted EPS growth for the full year of 2019.