Foot Locker Stock Tumbles 27%

Foot Locker's stock plummeted over 27% on Friday after posting disappointing results in its first fiscal quarter. The sports apparel retailer reported a double-digit sales drop and missed both revenue and earnings expectations. Net income for the quarter was $36 million, compared to $132 million in the same period the previous year, and sales dropped to $1.93 billion, an 11.4% decrease. Foot Locker attributed its poor performance to a consumer slowdown, which required aggressive promotion of merchandise to clear inventory and encourage spending on shoes and clothes. The company also reduced its earnings per share guidance. Foot Locker's disappointing report raises concerns for the retail sector as other companies prepare to announce their earnings in the coming weeks.