Foot Locker Stubs Its Toe

Second-quarter numbers are hurt by a poor performance in Europe.
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Foot Locker

(FL) - Get Report

slid 7% early Tuesday after the shoe seller warned that second-quarter earnings would miss estimates.

The New York-based company said second-quarter sales rose 3% from a year ago to $1.31 billion, while same-store sales rose 1.3%. Foot Locker guided to second-quarter earnings of 28 cents a share, about 20% below the Thomson First Call estimate of 35 cents.

"While our European business remains productive, generating a double digit profit margin, our recent financial results in this region were below our expectations and very disappointing," said CEO Matthew D. Serra. "Second quarter profit at Foot Locker Europe declined from the comparable period last year, more than offsetting the combined profit increase generated by our other divisions."

The company said it would offer second-half guidance and full second-quarter numbers Aug. 19.

Early Tuesday, Foot Locker shares fell $1.80 to $23.45.