Athletic shoe sales drag down Footstar earnings - leatherbiz: Leading Leatherbiz

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Athletic shoe sales drag down Footstar earnings

05/09/2002
US footwear retailer Footstar Inc. has slashed its forecast for the third-quarter, citing below-par sales of athletic shoes at its Footaction stores during August. The company also posted a 5% drop in same store sales for the four weeks ended August 24, with athletic sales falling by 7.5%. Sales at Footstar’s Meldisco division, which operates 5,858 licensed discount and family footwear departments at stores such as Kmart, fell 2.2%.

"Sales were particularly disappointing at Footaction, where the soft trends we saw in July continued for most of the month of August," Mickey Robinson, chairman and chief executive, said in a statement.

"With the slow start to the back-to-school season, our focus in the upcoming months will be to aggressively manage our inventories, especially at Footaction," Robinson said.

Footstar said it expects third-quarter profit of 55 cents to 60 cents a share, before costs related to the closure of shoe operations at bankrupt department store chain Ames Department Stores Inc.



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