Foot Locker shares fall after third-quarter report

Image copyright Getty Images Image caption Shares in Foot Locker have fallen by nearly 8% Foot Locker has posted third-quarter results which beat analysts’ expectations, but the company says holiday performance will be below…

Foot Locker shares fall after third-quarter report

Image copyright Getty Images Image caption Shares in Foot Locker have fallen by nearly 8%

Foot Locker has posted third-quarter results which beat analysts’ expectations, but the company says holiday performance will be below its earlier forecasts.

The stock has fallen by 8.5% since the retail company posted its earnings on Tuesday.

Third-quarter revenues rose by 6.2% on a year earlier to $1.9bn (£1.5bn), beating forecasts of $1.8bn.

However, it raised its full-year earnings forecast to $3.60 – $3.70 from $3.50 – $3.70.

For the fourth quarter it forecasts earnings of $1.67 – $1.69 – down from the $1.74 to $1.79 it had forecast at the beginning of the year.

What does Foot Locker say?

Foot Locker said it had held its share of the market through the 2018 Christmas season, according to Forbes, but this is more likely to be of an intangible sort rather than a hard result.

“The holiday season remained uncharacteristically competitive,” said Dick Johnson, Foot Locker’s chairman and chief executive.

“Early indications are that we gained market share for a fifth consecutive holiday season, but sales for the 2018 holiday season were not sufficient to offset the traffic challenges the industry faced,” he said.

For the third quarter the company’s inventory fell by 7.1% on a year earlier, although that was slower than the 10.7% drop forecast by Thomson Reuters analysts.

Foot Locker’s shares have risen by almost 60% this year, even as consumer spending growth slowed.

Foot Locker has grown through a strategy of steadily opening stores on US shopping centres and online.

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