Foot Locker Inc.’s stock FL, -4.80% slid 26% in premarket trade Wednesday, after the sporting goods retailer swung to a loss in the second-quarter as revenue also fell short of estimates and the company cut its full-year guidance. The news comes a day after a disappointing report from rival Dick’s Sporting Goods Inc. DKS, -24.15%, which that company blamed on a spike in shoplifting.
“However, 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.” 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%.