Foot Locker, Inc. (NYSE: FL) fell as much as 14 percent on Friday after the company reported first quarter revenue and profit that fell short of analysts’ estimates.
The athletic shoe and apparel company said first-quarter earnings was $1.36 per share. Analysts polled by Thomson Reuters had projected $1.38 per share.
Revenue rose 0.7 percent to $2 billion in the quarter ending April 29, also missing analysts’ estimate of $2.02 billion.
The New York-based company said the disappointing results were due to the delay income tax refund. A strong dollar also hampered results.
"The first quarter was one of our most profitable quarters ever, but it did fall short of our original expectations," said Richard Johnson, Chairman of the Board and Chief Executive Officer. "The slow start we experienced in February, which we believe was largely due to the delay in income tax refunds, was unfortunately not fully offset by much stronger sales in March and April. Nonetheless, we believe our banners remain at the center of a vibrant sneaker culture. We are confident that our customers have not lost their tremendous appetite for athletic footwear and apparel and that our position in the industry is stronger than ever."
Foot Locker shares fell as much as 15 percent to $59.75 in the early trading. It is the worst decline in more than eight years.
Comparable sales, a metric closely watched by investors, rose 0.5 percent, missing analysts’ forecast of a 1.5 percent increase.