Foot Locker, Inc. saw continued softness in its European operation in the second quarter ended July 30 nearly offset gains in the U.S., Canada, and Asia-Pacific businesses as total comp store sales inched up just 1.3% for the period. Total sales were up 3.0% to $1.31 billion, from $1.27 billion in the comparable period last year. Excluding the effect of foreign currency fluctuations, total sales for Q2 increased 2.2%.

Second quarter comparable store sales reflected a mid-single-digit increase at the company's combined U.S. businesses, led by a double-digit increase at Champs Sports. Comparable-store sales results at the company's international Foot Locker operations were mixed with the Canadian and Asia/Pacific stores posting “very solid” mid-single-digit increases, which were more than offset by a high-single-digit decline at the company's European stores.

Foot Locker said the European business remains productive, generating a double-digit profit margin, but Q2 profits at the unit declined from the comparable period last year, more than offsetting the combined profit increase generated by the other divisions.

Foot Locker now sees second quarter EPS in the range of 27 cents to 29 cents per share.

FL shares were down 9.0% for the week to close at $22.75 on Friday.


>>> Looks like Mr. Daly has a big job ahead of him…