Foot Locker Inc (NYSE:FL) was headed downhill in pre-market trade after its quarterly results failed to impress the market, with its sales missing analysts’ expectations.
The athletic shoe and apparel retailer saw its quarter to February 3 swing into a net loss of US$49mln or 40 US cents a share, from a net income of US$189mln or US$1.42 a share, in the same period a year ago.
READ: Foot Locker to curb in-store investments in 2018 as focus shifts towards online
The quarterly numbers include a US$99mln or 81 US cents a share, expense in relation to the US tax reform, the company said in a statement.
Excluding non-recurring items, adjusted earnings per share came in at US$1.26, just above market consensus of US$1.25.
Revenue rose 4.6% to US$2.21bn but was still below market expectations for US$2.22bn.
Same-store sales in the quarter declined by 3.7%, again missing market forecast for a drop of 2.4%.
Foot Locker is guiding 2018 same-store sales to be flat to in the low single-digit percentage range.
Dramatic shifts in customer behaviour
Richard Johnson, the retailer’s chairman and chief executive said: "The dramatic shifts influencing the expectations and behaviors of our customers continued to affect our business in the fourth quarter, just as they have throughout 2017."
"The first quarter of 2018 will likely see the continuation of sales and margins in line with trends in the second half of 2017," added chief financial officer Lauren Peters.
In premarket trading, its shares were down 7.37% at US$42.50.