:max_bytes(150000):strip_icc()/GettyImages-2167144715-a5c12df74f6745c39adeb3e5a09412d3.jpg "Foot Locker shares hit by weak results and store closures")
Key findings
- Foot Locker reported sales growth of 1.9%, narrowly beating expectations.
- The company announced store closures in Asia and Europe.
- The company’s forecast for 2024, which includes flat sales in the middle of the forecast period, remained unchanged.
Foot Locker (FL) shares nosedived on Wednesday after the company’s second-quarter results disappointed investors.
The sneaker retailer said its revenue rose 1.9% year over year to $1.9 billion, just above analyst consensus, according to Visible Alpha. The company reported a loss of 13 cents per share, compared with 5 cents a year earlier and slightly wider than expected.
Foot Locker shares fell nearly 13% by late morning, bringing the stock down about 8% so far this year.
Foot Locker closed stores in South Korea, Denmark, Norway and Sweden
Despite the sales growth, Foot Locker left its full-year guidance unchanged. The company still expects an increase to a decrease of 1% from its 2023 sales of $8.15 billion.
As part of its ongoing “Lace Up” plan, the company said it has closed all stores and e-commerce operations in South Korea, Denmark, Norway and Sweden, and agreed to transfer its presence in Greece and Romania to a European retail group.
In total, the company will close around 30 of its 140 stores in the Asia-Pacific region and 629 stores in Europe by mid-2025.
