Foot Locker Inc. (NYSE:FL) posted weaker-than-expected second-quarter results as international weakness and declines at its WSS banner offset growth in North America.
The retailer reported a non-GAAP loss of $0.27 per share, missing analyst expectations for a profit of $0.11 per share. Revenue fell 2.4% year-over-year to $1.85 billion, below estimates of $1.87 billion.
North American comparable sales rose 1.4%, led by Foot Locker, Kids Foot Locker, and Champs Sports. Champs Sports recorded its fourth straight quarter of positive comparable sales growth, up 2.0%.
International operations remained under pressure, with comparable sales down 10.3% across Europe and Asia-Pacific. The WSS banner reported an 8.1% drop in comparable sales. Gross margin contracted 50 basis points year-over-year, reflecting weaker merchandise margins.
