Foot Locker Swings to 3Q Loss on Charge

The company reported a loss of $33 million, or 22 cents per share, compared with profit of $65 million, or 42 cents per share, during the same period a year earlier.

The recent quarter included a non-cash, after-tax charge of $66 million, or 43 cents per share, to write down some of the company's U.S. operations. Excluding that adjustment and costs to close certain stores, Foot Locker said it earned $33 million, or 21 cents per share.

Analysts polled by Thomson Financial expected earnings of 24 cents per share. Analyst forecasts typically exclude one-time charges.

Revenue dipped to $1.36 billion, from $1.43 billion a year ago. Analysts forecast revenue of $1.38 billion.

Same-store sales fell 5 percent during the quarter, the company said. Same-store sales, or sales at stores open at least a year, is an important retail performance indicator because it measures sales at existing stores rather than newly opened ones.

"Our third quarter sales were disappointing, reflecting a challenging external environment and the lack of exciting fashion trends in athletic footwear and apparel," Chairman and Chief Executive Matthew D. Serra said in a statement.

Foot Locker said it has opened 112 new stores this year, and remodeled or relocated 179 others. The company said it expects to open eight new stores and close up to 142 unproductive ones during the fourth quarter.

Shares lost 30 cents, or 2.3 percent, to $12.59 Tuesday. Earlier, the stock traded as low as $12.32, below a previous 52-week low of $12.87.