Key Takeaways
- Foot Locker posted sales growth of 1.9%, narrowly beating expectations.
- The company announced store closures in Asia and Europe.
- The company’s 2024 guidance, including flat revenue at the midpoint, remained unchanged.
Foot Locker (FL) shares took a dive Wednesday after the company’s second-quarter results underwhelmed investors.
The sneaker retailer said revenue grew 1.9% year-over-year to $1.9 billion, just above the analyst consensus, per Visible Alpha. It posted a loss of 13 cents per share, compared with 5 cents a year earlier and slightly wider than expectations.
Shares of Foot Locker tumbled nearly 13% as of late morning, pulling them about 8% into the red this year so far.
Foot Locker Closed Stores in South Korea, Denmark, Norway, Sweden
Despite the top-line growth, Foot Locker left its full-year guidance unchanged. The company still expects between a 1% increase and 1% drop from its $8.15 billion in 2023 sales.
As part of its ongoing “Lace Up” plan, the company said it closed all stores and e-commerce operations in South Korea, Denmark, Norway and Sweden. It also reached a deal to transfer its presence in Greece and Romania to a European retail group.
All told, the company will close roughly 30 of its 140 stores in the Asia Pacific region and 629 stores in Europe by mid-2025.