Foot Locker maintain strong financial position in Q1
28 May '07
3 min read
Foot Locker Inc the New York-based specialty athletic retailer, reported financial results for its first quarter ended May 5, 2007.
Financial Results : Net income for the Company's first quarter ended May 5, 2007 was $17 million, or $0.11 per share, as compared with $59 million, or $0.38 per share, last year. Last year's results benefited by $1 million, or $0.01 per share, from a cumulative effect of accounting change related to the Company's required adoption of SFAS 123.
First quarter sales decreased 3.6 percent to $1,316 million, as compared with sales of $1,365 million for the corresponding prior year period. Excluding the effect of foreign currency fluctuations, total sales for the 13-week period decreased 5.3 percent. First quarter comparable-store sales decreased 5.1 percent.
“Our first quarter financial results reflected a weak performance in each of our U.S. businesses partially offset by a solid profit increase at our international operations,” stated Matthew D. Serra, Foot Locker Inc's Chairman and Chief Executive Officer.
“Because of the disappointing sales at our U.S. stores, we increased our promotional posture to help clear older goods and reduce inventory levels. As a result, our gross margin in our U.S. store businesses fell significantly short of our plan.”
Mr. Serra continued, “While we are seeing signs of improvement in our U.S. store businesses, we believe it is prudent to more-conservatively plan our business for the balance of 2007. Therefore, for our second fiscal quarter, we currently expect earnings to be in the range of $0.15 to $0.20 per share. This forecast includes higher markdowns than last year to ensure that our inventory is well-positioned for the fall season. We currently expect that our earnings for the full year will be in the range of $1.15 to $1.25 per share.”
marketing@alchempro.com
