Investing.com – Footlocker slumped on Friday after the apparel company reported second-quarter results that fell short of estimates on both top and bottom lines.
Footlocker reported earnings of 66 cents per share on revenue of $1.774 billion, missing consensus estimates from Investing.com for earnings of 67 cents a share on revenue of $1.82 billion, sending shares sliding than 17%.
Same-store sales grew 0.8%, well below expectations for a 3.2% gain, while gross profit margins fell to 30.1% from 30.2%.
The results were at the lower end of management’s expectations, but the company said it was well positioned for the back-to-school period on beyond.
"While results in the second quarter did come in at the low end of our estimates, we saw improvement in our performance as we moved through each month of the quarter," said Chief Executive Richard Johnson.
"We remain deeply committed with sneaker and youth culture, and believe this positive momentum exiting the quarter has us well prepared for the back-to-school period and beyond."
The company opened 10 new stores in the quarter, remodeled or relocated 35 other locations, and closed 37 stores. It had 3,174 stores in 27 countries at the end of the period.
While the company says it's confident about its prospects, investors are clearly skepitcal -- and not just Friday. The shares are headed for a weekly loss of about 12.7%. They're off about 16% so far in August and 35% on the year.