Foot Locker Shares Fall After Executives Warn of Persisting Supply Chain Impact

Foot Locker just posted better than expected results for the third quarter. Net income in Q3 was $158 million, or $1.52 per share. Total sales were $2.19 billion, marking a year-over-year increase of 3.9%. Comp store sales were up just 2.2%. But shares of Foot Locker still dropped as much as 12% by early afternoon on Friday after the company said it expects supply chain issues to continue to impact business. According to analysts, these headwinds could cause even more problems in the long-term. “We expect global supply chain constraints to persist throughout the fourth quarter,” said CFO Andrew Page in a call with investors. “That said, we believe we are positioned for the holiday season, with positive momentum and inventory levels ready to meet customer demand.” Page added in a call with investors that global supply chain problems are keeping the company cautious on its outlook for the year. The company expects full year sales growth to be in the high teens and comp sales in the mid-teens. In light of the results, analysts expressed hesitation on the long term potential for Foot Locker. “In a retail environment where many companies are experiencing massive top-line growth, Foot Locker continues to struggle,” wrote CFRA Research equity

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