Foot Locker shares plunge after weak gross sales

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Adidas offered a must have coach final 12 months

Buyers dumped Foot Locker like a pungent pair of trainers after the agency reported gradual quarterly gross sales.

The New York athletic-wear chain stated gross sales within the February-to-April interval rose zero.5% from 2016 at shops open at the least a 12 months.

The information despatched shares of the corporate down 15% in commerce on Friday morning.

Chief govt Richard Johnson stated he was “not glad” with the outcomes. The agency is crafting a “plan B” for the 12 months, centered on controlling prices.

Whole Foot Locker gross sales topped $2bn, up zero.7% year-on-year, because of some new shops.

However delayed tax refunds within the US depressed site visitors in February, historically one of many agency’s largest months, Mr Johnson stated.

He additionally stated the craze for traditional Adidas Superstars and Stan Smith trainers had died down, with out being changed by a comparable must-have merchandise.

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Gross sales elevated because the interval progressed, he added, repeating observations made by different retailers.

“It was a little bit of a rollercoaster journey,” he stated.

Foot Locker, which has a worldwide footprint of greater than three,350 shops and types reminiscent of Champs Sports activities and Runners Level, stated whole earnings had been $180m within the quarter, down greater than 5%.

Deutsche Financial institution analyst stated Paul Trussell stated trade analysts didn’t believe that Foot Locker may ship on its promised gross sales progress in the remainder of the 12 months.

“I do not sense a consolation degree with that view,” he stated. “Assist us get extra assured on that entrance.”

Mr Johnson stated the corporate remained safe in its place.

“We stay very assured the patron hasn’t gone elsewhere,” he stated.

“We live in a world that’s casualised,” he stated. “Sneakers are an important a part of our customers’ wardrobe.”