Mild weather puts dampener on December Footstar sales
Unseasonably warm weather and the continuing weakness in the US economy have been blamed by the US footwear and apparel retailer Footstar for its disappointing December sales figures.
Year on year, total sales in the company’s athletic segment were down 2.5% to $119.2 million from $122.3 million, with comparable store sales falling 5.7% overall. Comparable store sales through the company’s 6765-strong chain of ‘Meldisco’ licensed footwear departments were especially hard hit, falling 9.1%.
The figures prompted the company to issue a lower than expected forecast for the fourth quarter, with earnings per share coming in at 60 cents – as opposed to analysts’ estimates of 72 to 90 cents.
Mickey Robinson, Chairman and Chief Executive Officer commented; "At Meldisco, the lower revenues predominantly reflect decreased sales of winter-related product and reduced circular advertising. Sales rebounded in the last week when much of the northern tier of the country experienced heavy snow, and we are optimistic that we will see increased boot sales in January and February. In the athletic segment, strong footwear sales were offset by lower sales of apparel and accessories."
Last week, Footstar announced that its Meldisco division would begin operating the licensed children's footwear sections of Federated Department Stores Inc. that had previously been leased and managed by Stride Rite Corp.
