Foot Locker pulls guidance for 2020 following store closures

Foot Locker pulls guidance as it shuts stores over coronavirus. The company has announced that it will pull down its guidance for 2020, a year in which it is expected to grow by 5% year-on-year. With the initial forecast for 2020, its revenue would rise to 8.4 billion dollars. Foot Locker’s sales exceeded the barrier of 8 billion for the first time in its history in 2019. Its net profit, however, contracted 7.9 %, up to 498 million dollars. 

Foot Locker joins other fashion retailers with store closures. The resolution to closes stores will affect all countries in North America, Europe, Africa, the Middle East, and Malaysia. Only those in the Asia Pacific region will be exempt from this announcement, this comprises Australia, New Zealand, Hong Kong, and Singapore. “Subject to direction from local and national governments,” the group said in a statement.    

Foot Locker currently has 3,129 stores in 27 countries, in addition to another 130 franchised locations in the Middle East and nine licensees under the Runners Point format in Germany. The measure also includes these store formats.