Foot Locker Cutting U.S. Stores, Increasing European Presence

Foot Locker announced it will “reduce its U.S. inventory, close more U.S. stores than expected and increase its presence in Europe” in an effort to strengthen its operations, according to the WALL STREET JOURNAL.  Foot Locker will close nearly 250 stores across the U.S. this year, almost “twice the number originally planned.”  The company next year will open 30 new stores outside the U.S. with an emphasis on Western Europe.  Foot Locker currently operates around 4,000 stores in 20 countries in North America, Europe and Australia.  The company also has retained Lehman Bros. “to advise in strategic alternatives, including inquiries from private-equity firms.”  Foot Locker expects a Q2 loss of $0.17-0.20 per share, compared to previously expected earnings of $0.15-0.20 per share.  Shares fell $0.25, or 1.3%, to $18.80 in trading yesterday (WALL STREET JOURNAL, 7/31).  At presstime, Foot Locker was trading at $18.89, up 0.43% from yesterday’s close (THE DAILY).

POSSIBLE SUITORS: In N.Y., Suzanne Kapner cited sources as saying that Apollo Management and Sports World Int’l Founder Michael Ashley “were among the suitors to have expressed an interest in Foot Locker” (N.Y. POST, 7/31).