Foot Locker Dives as Investors Brace for ‘Several Years of Pain’
- Shares suffer worst rout since 2008 after results disappoint
- CEO Dick Johnson says retailer is ‘working quickly to adjust’
Foot Locker Inc. reported second-quarter profit, sales, and margins that fell short of expectations, sending shares plummeting as much as 28 percent. Bloomberg Gadfly's Sarah Halzack examines the results on 'Bloomberg Markets.' (Halzack is a Bloomberg Gadfly columnist. The opinions expressed are her own.) (Source: Bloomberg)
Foot Locker Inc. suffered its worst stock decline since the depths of the last recession after a bleak outlook renewed concerns that the industry’s growth streak has come to an end.
Shares of the footwear chain fell as much as 28 percent in the wake of results that were weaker than expected by most every benchmark: profit, sales and margins. Foot Locker also forecast continued sales declines over the rest of 2017, with Chief Executive Officer Dick Johnson citing sluggish demand for top brands, including Nike Inc.’s Jordan and Adidas AG’s Stan Smith.