UPDATE 1-Foot Locker sees forex pressures hurting Q3 EPS

* Sees Q3 comp sales up low to mid-single digits

* Sees Q3 sales up, but 3.5-4 pct lower than comp sales

* Sees forex pressures hurting Q3 EPS by $0.01

* Shares down 4 pct in morning trade

Aug 20 (BestGrowthStock) – Athletic shoe retailer Foot Locker Inc
(FL.N: ) struck a cautious note for the remainder of 2010 citing
an uncertain economic environment, and said it expects
third-quarter comparable sales to be up low- to mid-single
digits.

“A large percentage of workers in the U.S. that are
employed seem a little more willing to spend than at this time
last year, particularly during important shopping appointments
such as back-to-school,” Chief Executive Ken Hicks said on the
company’s second-quarter earnings conference call Friday.

Foot Locker reported a second-quarter profit (Read more your timing to make a profit.) on Thursday,
and a second consecutive quarter of positive same-store sales
— a key metric of retail health — after 15 consecutive
quarters of declines. [ID:nSGE67I0J0]

The company said it sees third-quarter net sales up, but
about 3.5-4 percent lower than the same-store sales in the
quarter, because of forex pressures and fewer stores this year.

Forex pressures are expected to hurt quarterly earnings by
a cent a share, Chief Financial Officer Robert McHugh said on
the call. [ID:nWNAB9862]

Analysts on average expect the company to earn 17 cents
share, on revenue of $1.24 billion in the third quarter,
according to Thomson Reuters I/B/E/S.

Foot Locker, which operates retail stores across North
America, Europe and Australia, has been shutting down
underperforming stores and cutting jobs in a bid to consolidate
operations of its various store chains under one management
structure.

At the end of the second quarter, Foot Locker operated
3,476 stores. During the first six months of 2010, it opened 27
new stores and closed 51 existing ones. It also remodeled or
relocated 94 stores during this period.

The shoe retailer also said it sees gross margin rate,
including both cost of merchandise and occupancy expenses,
improving by 100 to 150 basis points in the third quarter.

The New York-based company’s shares, which touched a near
two-year high of $16.76 in April, were trading down 4 percent
at $12.48 Friday morning on the New York Stock Exchange.
(Reporting by Shradhha Sharma in Bangalore; Editing by Maju
Samuel)

UPDATE 1-Foot Locker sees forex pressures hurting Q3 EPS