Footlocker shares take a hit after poor quarterly sales

Footlocker (NYSE:FL) reported a slow set of quarterly sales, triggering a 14 percent fall in The New York athletic-wear chain’s shares in pre-market trading.

The US athletic footwear chain’s said on Friday that the sales in March and April failed to offset a poor February. The sluggish February was due to a later-than-usual disbursement of income-tax refunds meaning consumers could not afford to buy shoes.

Profits for Footlocker fell to $180 million, compared to the $191 million in profits the store reported this time last year. Share fell from $1.39 to $1.36 last year.

Analysts from Bloomberg expected $183 million in net income and $1.38 a share.

The company’s chief executive and chairman, Richard Johnson, said that while the first quarter was one of the group’profitable, “it did fall short of our original expectations.”

“The slow start we experienced in February, which we believe was largely due to the delay in income tax refunds, was unfortunately not fully offset by much stronger sales in March and April. Nonetheless, we believe our banners remain at the centre of a vibrant sneaker culture,” he said.

“We are confident that our customers have not lost their tremendous appetite for athletic footwear and apparel and that our position in the industry is stronger than ever.”

Paul Trussell from Deutsche Bank said industry analysts no longer had the confidence that Foot Locker could deliver on its promised sales growth throughout the rest of the year.

He said: “I don’t sense a comfort level with that view. Help us get more confident on that front.”

The company’s chief executive remained confident on this year’s outlook for the footwear company.

“We remain very confident the consumer hasn’t gone elsewhere,” he said.

“We are living in a world that is casualised. Sneakers are a very important part of our consumers’ wardrobe.”