Following disappointing quarter, Foot Locker lowers forecasts

Business

Credits: Courtesy of Foot Locker Inc.

American retail group Foot Locker Inc. closed the third quarter of the 2024/25 fiscal year with a slight decline in sales and a large loss. In view of the unexpectedly weak results, the company lowered its forecasts for the full year on Wednesday.

In the three months up to November 2, group sales amounted to 1.96 billion US dollars (1.87 billion euros). This represented a decrease of 1.4 percent compared to the same quarter last year. Adjusted for exchange rate changes, revenues fell by 2.2 percent.

The retailer was able to improve its gross margin due to lower price discounts. However, higher investments, restructuring costs and write-downs meant that the group had to report a net loss of 33 million US dollars (31 million euros). In the same period last year, it had still posted a surplus of 28 million US dollars. Adjusted for special effects, net profit rose from 28 to 31 million US dollars.

The latest figures and cautious prospects for the final quarter prompted management to revise its targets for the current fiscal year downwards. It now expects a decline in sales of 1.0 to 1.5 percent. Previously, a development of between +1.0 and -1.0 percent had been expected. The forecast for earnings per share adjusted for special items, which had previously been between $1.50 and $1.70, has been reduced to $1.20 to $1.30.

This article originally appeared on FashionUnited.de, translated and edited to English.

It was translated using an AI tool. .

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