Overview
- Company outlined pre-tax charges of $500 million to $750 million tied to a Foot Locker review that includes store closures, inventory clean-up and integration costs.
- Adjusted earnings per share for the quarter ended Nov. 1 were $2.07 versus $2.71 expected, reflecting a softer operating margin despite strong sales.
- Dick's projects Foot Locker’s fourth-quarter gross margin at 1,500 basis points versus 2,500 a year earlier, with pro-forma comparable sales down mid- to high-single digits.
- Full-year outlook increased to comparable sales growth of 3.5%–4% and adjusted EPS of $14.25–$14.55.
- Shares fell nearly 6% in premarket trading as quarter-end cash declined to about $821 million and long-term liabilities rose to $7.229 billion after the deal.