Foot Locker Temporarily Closing Stores in Response to Coronavirus

Foot Locker is temporarily closing stores across all its brands.
Author:
Publish date:

Foot Locker  (FL) - Get Report said it was temporarily closing its stores across all of its brands in North America, Europe, the Middle East, Africa and Malaysia from Tuesday through March 31 and withdrew its 2020 guidance.

Shares were down 2.5% to $23.06 in premarket trading.

The New York-based athletic apparel and equipment retailer joined an ever-growing list of companies shuttering stores and withdrawing their financial guidance in response to the coronavirus.

Foot Locker said the store closings include Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, Champs Sports, Runners Point, and Sidestep. 

The rest of Foot Lockers in the Asia Pacific region - which include Hong Kong, Singapore, Australia and New Zealand - will remain open subject to direction from local and national governments. 

Foot Locker has 3,129 retail stores in 27 countries across North America, Europe, Asia, Australia, and New Zealand.

The company said in a statement Tuesday that "due to the rapidly evolving market conditions domestically and internationally, the company is withdrawing the full-year 2020 guidance issued on the fourth quarter earnings call on February 28."

Foot Locker said it will provide an updated outlook on its first-quarter earnings call.

"The decision to close our stores was a difficult but necessary one," Chairman and CEO Richard Johnson said in a statement. "During this time period, we will continue to pay our highly-valued store associates."

In February, the company reported stronger-than-expected fourth-quarter earnings, but weak holiday demand and tough competition in sports clothing markets held back same-store sales growth.