Foot Locker shares plunge 15% after dismal Q2 results

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Foot Locker

Foot Locker shares dived 15 per cent in pre-market trading today, after the retailer missed profit and sales estimates for the second quarter.

The US-based global sportswear chain raked a net income of $51 million (£39.5 million) in the quarter, compared with $127 million (£98.5 million) in the previous quarter and well below most analyst estimates.

Sales also fell 4.4 per cent to $1.7 billion (£1.31 billion), below analyst expectations of around $1.8 billion (£1.39 billion).

Meanwhile, same-store sales fell six per cent, compared with predictions of a 0.8 per cent increase.

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Foot Locker chief executive Richard Johnson said he was “obviously disappointed”.

“Sales of some recent top styles fell well short of our expectations and impacted this quarter’s results,” he said in a statement.

“At the same time, we were affected by the limited availability of innovative new products in the market.

“We believe these industry dynamics will persist through 2017, and we expect comparable sales to be down three to four percent over the remainder of the year.”

He added: “Our team is working quickly to adjust our operations to a changed retail landscape in which we are seeing our consumers move faster than ever from one source of inspiration or influence to another.”

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