{"id":14047,"date":"2023-08-23T21:44:20","date_gmt":"2023-08-23T21:44:20","guid":{"rendered":"https:\/\/isafespend.com\/investing\/foot-lockers-stock-tumbles-34-as-company-suspends-dividend-after-swinging-to-a-loss\/"},"modified":"2023-08-23T21:44:21","modified_gmt":"2023-08-23T21:44:21","slug":"foot-lockers-stock-tumbles-34-as-company-suspends-dividend-after-swinging-to-a-loss","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=14047","title":{"rendered":"Foot Locker\u2019s stock tumbles 34% as company suspends dividend after swinging to a loss"},"content":{"rendered":"
\n

Foot Locker Inc.\u2019s stock slid 34% Wednesday, after the sporting goods retailer swung to a loss in the second-quarter, lowered its full-year guidance and said it\u2019s suspending its quarterly dividend to conserve cash.<\/p>\n

The news comes a day after a disappointing report from rival Dick\u2019s Sporting Goods Inc.
\n DKS,
\n -0.34%<\/bg-quote>,<\/span>
\n which that company blamed on a spike in shoplifting. <\/p>\n

\n

Foot Locker\u2019s stock is on track for a record percentage decline and its lowest close since Oct. 7, 2010, when it closed at $15.02, according to Dow Jones Market Data. It has fallen for six of the last seven days and is down for three in a row. <\/p>\n

Foot Locker
\n FL,
\n -28.28%<\/bg-quote>
\n had a net loss of $5 million, or 5 cents a share, for the quarter, after income of $94 million, or 99 cents a share, in the year-earlier period. Adjusted per-share earnings came to 4 cents, matching the FactSet consensus. <\/p>\n

Sales fell 9.9% to $1.891 billion from $2.065 billion, missing the $1.879 billion FactSet consensus. Same-store sales were down 9.4%, to match the FactSet consensus. <\/p>\n

\u201cOur second quarter was broadly in line with our expectations, despite the still-tough consumer backdrop,\u201d said Chief Executive Mary Dillon, in a statement. <\/p>\n

\u201cHowever, we did see a softening in trends in July and are adjusting our 2023 outlook to allow us to best compete for price-sensitive consumers, while still leaning into the strategic investments that drive our Lace Up plan,\u201d she said, referring to the strategic plan outlined at a March investor day.<\/p>\n

The company lowered its full-year guidance and now expects adjusted EPS to range from $1.30 to $1.50, down from prior guidance of $2.00 to $2.25. It expects sales to range from down 8.0% to 9.0%, versus prior guidance of down 6.5% to 8.0%. <\/p>\n

The company said it\u2019s pausing its quarterly cash dividend beyond its recently approved October payout to conserve cash for strategic investments. <\/p>\n

\u201cWe intend to update the market on our go-forward capital allocation plans and the timing around our longer-term financial targets when we report fourth quarter results,\u201d said Dillon. <\/p>\n

Gross margin fell 460 basis points in the second quarter, driven by a rise in promotional activity, which included higher markdowns, as well as occupancy deleverage and higher shrink.<\/p>\n

Shrink, a factor emerging in many quarterly earnings from retailers\u00a0can include damaged goods, but increasingly refers to shoplifting, which companies say is frequently being conducted by organized gangs. The issue is costing companies in the retail sector billions of dollars a year, according to executives. <\/p>\n

See:<\/strong>\u00a0Walmart\u2019s \u2018shrink\u2019 challenges differ from those of other retail giants, CEO says<\/p>\n

Related:<\/strong>\u00a0Target facing \u2018unacceptable amount\u2019 of retail theft and organized retail crime, CEO says<\/p>\n

Dick\u2019s on Tuesday blamed its poor earnings squarely on the issue. <\/p>\n

\u201cOrganized retail crime, and theft in general, is an increasingly serious issue impacting many retailers,\u201d Chief Executive Lauren Hobart told analysts on the company\u2019s earnings call.<\/p>\n

Organized retail crime was \u201csignificantly higher than we anticipated,\u201d said Chief Financial Officer Navdeep Gupta on the call.<\/p>\n

For more, see:<\/strong> Dick\u2019s Sporting Goods CEO highlights impact of organized retail crime: \u2018It\u2019s quite alarming what\u2019s going on\u2019<\/p>\n

Foot Locker\u2019s stock has fallen 59% in the year to date, while the S&P 500
\n SPX,
\n +1.10%<\/bg-quote>
\n has gained 14%. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Foot Locker Inc.\u2019s stock slid 34% Wednesday, after the sporting goods retailer swung to a loss in the second-quarter, lowered its full-year guidance and said it\u2019s suspending its quarterly dividend to conserve cash. The news comes a day after a disappointing report from rival Dick\u2019s Sporting Goods Inc. DKS, -0.34%, which that company blamed on<\/p>\n","protected":false},"author":1,"featured_media":14048,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-14047","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\nFoot Locker\u2019s stock tumbles 34% as company suspends dividend after swinging to a loss | iSafeSpend<\/title>\n<meta name=\"description\" content=\"Foot Locker Inc.\u2019s stock slid 34% Wednesday, after the sporting goods retailer swung to a loss in the second-quarter, lowered its full-year guidance and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/isafespend.com\/?p=14047\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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