NKE - Foot Locker's Evolution Will Take More Time Than Expected | Benzinga
Foot Locker (NYSE: FL) shares tanked almost 30% on Wednesday as the shoe chain posted a holiday loss and delayed the realization of its key profitability goal, while it works on becoming less reliant on Nike Inc (NYSE: NKE). Despite its successful diversification beyond Nike, the two are still deeply connected as Nike remains its biggest vendor.
Fourth Fiscal Quarter Highlights
For the quarter ended on $2.38 billion February 3rd, Foot Locker recorded sales rose almost 2% YoY to $2.38 billion, topping the estimated $2.28 billion. Comparable store sales were down 0.7% for the quarter.
Foot Locker had to use more compelling promotions and discounts to drive holiday sales and that hurt its profit margins. As a result, Foot Locker lost $389 million, or $4.13 per share, while making a net income ...