Foot Locker up for sale
New York City-based Foot Locker, the largest U.S. shoe retailer and a major importer through the West Coast ports, put up the “For Sale” sign Monday and hired Lehman Brothers to consult on responding to inquiries from buyout firms.
Foot Locker officials hinted last week that they may be interested in selling following the firm’s first forecasted loss in six years and the drop of its stock price to the lowest point in more than three years.
The firm also lowered its second quarter earnings forecast, citing plans to clear out unsold merchandise as a cause. The net loss will be 17 cents to 20 cents a share, Foot Locker said, compared to a previously forecast net income of 15 cents to 20 cents.
Liquidation of slow-selling products at its U.S. retail outlets during the second quarter cost the firm about $55 million, or 22 cents a share. The firm also announced it would close up to 250 of its 1,400 stores this year, double the originally forecast number.