Foot Locker hurt by weak demand for LeBron James sneakers
May. 20, 2016
NEW YORK (AP) — LeBron James and Kevin Durant basketball sneakers were not a slam dunk with Foot Locker shoppers.
Foot Locker said in a conference call Friday that sales of its basketball sneakers fell in the "mid-single digits" due to weak sales of the James and Durant shoes.
The retailer said it is discussing the problem with Nike Inc., which makes the James and Durant sneakers. Foot Locker said its other basketball offerings sold better, including Kobe Bryant's Nike sneakers and Stephen Curry's Under Armour Inc. shoes.
For its fiscal first quarter, Foot Locker reported net income of $191 million, or $1.39 per share.
The results did not meet Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.40 per share.
The shoe retailer, based in New York, posted revenue of $1.99 billion in the period, which also did not meet Street forecasts. Six analysts surveyed by Zacks expected $2.01 billion.
A year ago, the company earned $184 million, or $1.29 per share, on sales of $1.92 billion.
Sales in stores open at least a year — a key metric of a retailer's health — rose 2.9 percent during the quarter. Analysts had been expected a 4.5 percent increase, according to FactSet.
Shares of Foot Locker Inc. fell $3.78, or 6.5 percent, to close at $54.77 Friday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FL at http://www.zacks.com/ap/FL
Keywords: Foot Locker, Earnings Report