11:05 AM EST, 12/04/2024 (MT Newswires) -- Foot Locker ( FL ) slashed its full-year earnings outlook on Wednesday and reported lower-than-expected fiscal third-quarter results amid soft consumer spending trends and the impact of promotional activity.

The footwear retailer now anticipates reporting adjusted earnings per share between $1.20 and $1.30 for the year ending Feb. 1, down from its prior guidance range of $1.50 to $1.70. The company expects sales to decline between 1% to 1.5%, compared with its a 1% drop to a 1% gain previously projected. The current consensus on FactSet is for non-GAAP EPS of $1.53 and revenue of $8.13 billion.

Comparable sales growth in the year is expected between 1% to 1.5%, reflecting a lower top end than the prior forecast's 3% estimate. Six analysts polled by FactSet expect the metric to grow 1.8%.

"We are taking a more cautious view and are lowering our full-year sales and earnings outlook due to a more promotional environment and softer consumer demand outside of key selling periods," Chief Executive Mary Dillon said in a statement. "We remain focused on unlocking opportunities through our new Reimagined stores and refresh program, revamped digital experience, including the recent launch of our new mobile app, and stronger customer engagement through our enhanced FLX Rewards Program."

Foot Locker ( FL ) shares fell 10% in Wednesday trading.

For the three-month period ended Nov. 2, the company posted adjusted EPS of $0.33 versus $0.30 in the prior-year quarter. Analysts polled by FactSet expected $0.40. Sales fell 1.4% year over year to $1.96 billion, missing Wall Street's $2 billion estimate. On a GAAP basis, Foot Locker ( FL ) swung to a per-share loss of $0.34, compared with EPS of $0.30 last year.

Comparable-store sales increased 2.4%, while six analysts expect a rise of 3.2%.

"Consumer spending trends softened following the peak Back-to-School period in August, and the promotional environment was more elevated than anticipated," Dillon said.

For the fourth quarter, Foot Locker ( FL ) expects adjusted EPS in a range of $0.70 to $0.80, while revenue is seen falling by 1.5% to 3.5%. The current consensus is for EPS is $0.94 and about $2.35 billion in sales. The company forecasts comparable sales in the quarter to increase by 1.5% to 3.5%, while five analysts polled by FactSet expected 3.4% growth.

"While our trends in early November landed below our expectations as consumers held back their spending ahead of the holiday season, we saw a meaningful and positive acceleration over the key Thanksgiving week period, especially in stores," according to Dillon.

Price: 21.49, Change: -2.69, Percent Change: -11.11