Foot Locker is down about 20% in premarket trading on Friday after releasing dismal second-quarter results.
The sneaker retailer reported earnings of $US0.39 a share, much lower than Wall Street’s estimates of $US0.89.
Revenue was also light, coming in at $US1.7 billion, which was lower than the $US1.8 billion that was expected by the Bloomberg consensus.
Additionally, same-store sales slumped 6% versus a year ago.
The second quarter results were dragged down by a $US50 million pre-tax litigation charge related to a lawsuit regarding the company’s pension plans for former employees.
During the quarter, the company opened 24 new stores, bucking the recent trend of retail store closures. Foot Locker closed only 19 in the second quarter, resulting in a net add of five store. Other retailers have been hit by the growth in online shopping, with Sears, Nike, Walmart and others racing to increase their online presence to meet shoppers’ changing habits.
Foot Locker is down 46.34% this year, including the post-earnings plummet.