The US retail group Foot Locker Inc. closed the third quarter of the 2024/25 financial year with a slight decline in sales and a high loss. Given the weaker-than-expected results, the company lowered its full-year forecasts on Wednesday.
In the three months before November 2nd, group sales amounted to 1.96 billion US dollars (1.87 billion euros). This corresponded to a decline of 1.4 percent compared to the same quarter of the previous year. Adjusted for exchange rate changes, revenue fell by 2.2 percent.
The retailer was able to improve its gross margin due to lower markdowns. However, higher investments, restructuring costs and value adjustments meant that the group had to report a net loss of 33 million US dollars (31 million euros). In the same period last year, it had achieved a surplus of $28 million. Adjusted for special items, net profit rose from $28 to $31 million.
The latest figures and cautious outlook for the final quarter prompted management to revise its targets for the current financial year downwards. It now expects sales to decline by 1.0 to 1.5 percent. Previously, a development of between +1.0 and -1.0 percent was expected. The forecast for earnings per share adjusted for special items, which had previously been between $1.50 and $1.70, was lowered to between $1.20 and $1.30.