Foot Locker profits plunge to $102 million in the third quarter, 35% less than in 2016

The US footwear and sportswear company saw net profits fall to 102 million dollars (86 million euros) at the end of the third quarter, 35% less than the profits earned over the same period of the previous year.

August to October revenues for the multinational decreased to 1,870 million dollars (1,585 million euros), about 1% less than the turnover recorded during the third quarter of its previous fiscal year.

The group said that it incurred administrative and sales expenses of 7 million dollars (5.9 million euros) related to the impact of the hurricanes, which damaged inventory. The results also include a loss of 13 million dollars (11 million euros) related to the reduction and reorganisation of the workforce.

With respect to the first nine months of the fiscal year ended on October 28, Foot Locker earned 333 million dollars (282 million euros), 30% less.

Footlocker President and CEO Richard Johnson indicated that he expects Foot Locker to reach and even slightly exceed the forecast for the whole of the year and the fourth quarter. Mr. Johnson continued: "The reduction and reorganization of our corporate and division staff during the quarter, while a difficult decision, was a critical step in positioning us for success as we navigate through the tremendous disruption affecting our customers and the retail industry in general.  We are adjusting our course proactively, including creating new initiatives with key vendors and making critical investments in our digital platforms and supply chain, to ensure that Foot Locker will continue to thrive at the center of sneaker culture and, more broadly, youth culture."