DOW JONES NEWSWIRES Foot Locker Inc. (FL) swung to a fiscal third-quarter profit from a year earlier - when it had recorded a big write-down - but the company cut its fiscal fourth-quarter forecast sharply.
"The economic slowdown in the United States, particularly during the months of September and October, was offset in part by our ability to improve our sales and earnings in our international businesses," said Chief Executive Matthew D. Serra.
For the quarter ended Nov. 1, the athletic apparel and footwear retailer reported net income of $24 million, or 16 cents a share, compared with a net loss of $33 million, or 22 cents a share, a year earlier.
The latest results included a write-down of $3 million, or 2 cents a share, related to the value of a short-term investment. The prior-year quarter's results included a write-down related to store closings of $105 million. Excluding items, earnings fell to 18 cents a share from 21 cents.
Net sales dropped 3.5% to $1.31 billion as same-store sales fell 1.7%.
Analysts' estimates were for per-share earnings of 25 cents on revenue of $1.35 billion, according to a poll by Thomson Reuters.
Gross margin rose to 72.9% from 71.9%, while inventory shrank 15%.
Earlier this month, Foot Locker completed its purchase of skateboard-apparel retailer CCS from Delia's Inc. (DLIA) for $103.2 million. The deal is meant to help capture more younger customers, whose tastes have migrated to such action sports as skateboarding and BMX bike riding.
Looking ahead, Foot Locker now expects fiscal-year earnings of 50 cents to 63 cents a share. In August, it had raised the bottom end of its guidance range, resulting in a view of 70 cents to 85 cents a share. Analysts were looking for 82 cents.
Foot Locker's shares fell 5.6% to close at $7.63 and were unchanged in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com
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(END) Dow Jones Newswires
November 20, 2008 17:23 ET (22:23 GMT)

Publié le 20 novembre 2008 Copyright © 2008 Dowjones