Shares of athletic shoe and apparel giant
slipped Tuesday after sneaker-store chain
said it would further cut back its planned purchases of Nike products.
In a 10-Q filing with the
Securities and Exchange Commission
on Monday, Foot Locker said purchases of certain Nike footwear and other products could be reduced by approximately $300 million to $400 million. Previously, the company planned to reduce spending by $150 million to $200 million. Foot Locker said it plans to increase the number of purchases from its other key vendors, enabling it to meet customer demand.
According to guidance provided on its third-quarter earnings call on Nov. 21, Foot Locker said that its business with Nike would be down in the first four of five months of 2003, but the company will remain a significant supplier in 2003.
Foot Locker also said it expects to post a fourth-quarter profit, excluding items, of 33 cents to 35 cents a share. On average, Wall Street analysts are expecting the company to earn 34 cents, according to Thomson Financial/First Call.
Shares of Nike, which is scheduled to report earnings after the close on Dec. 19, were recently down $1.41, or 3.4%, at $42.72 on the
New York Stock Exchange. Foot Locker was down 37 cents, or 3%, at $12.15.