Foot Locker stock crashes 30% as company cuts forecast again citing 'price-sensitive consumers'

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A weakening consumer environment continues to weigh on Foot Locker's turnaround strategy as the company expects comparable sales to decline at their highest levels in more than a decade.

) stock crashed early Wednesday, falling as much as 32% in pre-market trade as the company slashed its full-year outlook for the second straight quarter and suspended its quarterly dividend as a "still-tough consumer backdrop" weighs on the footwear retailer.

The retailer now sees sees full-year comparable sales falling in a range of 9%-10%, a steeper drop than its initial forecast for a 7.5%-9% decline.the "tough macroeconomic backdrop" would impact full-year sales during its first quarter earnings call. Foot Locker hasn't seen same-store sales decline more than 6% for the year since 2010.

Through Tuesday's close, Foot Locker shares had lost 38% so far this year. With Wednesday's pre-market decline, losses will be closer to 57% for the year.

 

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