LONDON (ShareCast) - (Sharecast News) - Foot Locker shares tumbled on Friday after the retailer cut its annual sales and profit guidance as it reported a drop in first-quarter sales and net income.
The company now expects sales for the year to be down 6.5% to 8%, versus previous guidance for a decline of 3.5% to 5.5%. In addition, comparable sales are now expected to drop between 7.5% and 9%, down from previous guidance for a 3.5% to 5.5% decline.

Non-GAAP earnings per share are now seen at $2.00 to $2.25, down from $3.35 to $3.65.

The guidance downgrade came as Foot Locker said that first-quarter net income fell to $36m from $133m in the same period a year earlier, with total sales down 11.4% to $1.9bn. Earnings per share slumped to $0.38 from $1.37.

President and chief executive Mary Dillon said: "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.

"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."

At 1500 BST, the shares were down 25% at $31.23.

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