Thursday, May 10, 2007

Foot Locker Radically Lowers Sales

Foot Locker Inc: late Thursday cut it first-quarter earnings forecast to a range of 10 cents to 11 cents a share, down from its earlier forecast of 34 cents to 37 cents a share. "The shortfall in our expected earnings primarily reflects a first quarter comparable-store sales decline of 5.1% and additional markdowns taken in our U.S. stores," said Mathew Serra, chairman and chief executive, in a statement

Notice the size of the lowering. This isn't a few cents of a miss -- it's a really big change. Combine that with some of the misses today -- especially Wal-Mart's 3.5% decline -- and the news is not good right now.

From CBS Marketwatch