Foot Locker down on wider Q2 loss, lower annual gross margin target

Foot Locker

28/08/2024 15:06

(Updates)
    ** Shares of Foot Locker  FL.N  fall 15% to $27.86
    ** Co's Q2 net loss widens to $12 million, compared with $5
million a year ago
    ** Co reaffirms adjusted EPS and sales forecast for 2024,
but lowers gross margin expectations due to higher promotions
    ** Co reports Q2 adj. loss per share of 5 cents, compared
with estimates of 7 cents - LSEG data
    ** Q2 comparable sales rise 2.6%, while net sales climb 1.9%
    ** Co says it is closing stores and e-commerce operations in
South Korea, Denmark, Norway and Sweden
    ** "We remain in wait-and-see mode on the name, as the macro
environment remains challenging, product trends at number 1
supplier Nike remain a question mark, and 2H guidance assumes a
dramatic acceleration in profit generation," says Wedbush
analyst Tom Nikic in a note
    ** As of previous close, stock up 5.3% YTD

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))