Foot Locker (NYSE:FL) shares traded sharply lower in early Friday trading after the retailer reported worse-than-expected results for its first quarter.
The company posted a profit per share of $0.70 on revenue of $1.93 billion, missing the consensus of $0.78 on sales of $1.99B.
"Coming off the recent launch of our Lace Up Strategy at our Investor Day in March, we are making early progress in building a strong foundation to return to sustainable growth beyond this year," said Mary Dillon, President, and Chief Executive Officer.
"However, our sales have since softened meaningfully given the tough macroeconomic backdrop, causing us to reduce our guidance for the year as we take more aggressive markdowns to both drive demand and manage inventory."
As a result, Foot Locker cut its full-year outlook. It now expects FY sales to be down 6.5-8%, versus the prior outlook of down 3.5-5.5%.
Full-year profit is seen in the range of $2.00-2.25, a sharp cut to the previous $3.35-$3.65 expectations and a big miss compared to the consensus at $3.46.
As of 06:56 EST (11:56 GMT), Foot Locker shares are down 18.9%.