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Foot Locker shares surge on full-year guidance

By Associated Press
May 23, 2008 | Comments (0)

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Shares of athletic footwear retailer Foot Locker Inc. rose Friday after the company maintained its fiscal-year 2008 guidance and its adjusted profit met Wall Street expectations.

Shares rose $1.46, or 12.1 percent, to $13.54.

On Thursday, Foot Locker reiterated its fiscal 2008 earnings projection of 65 cents to 85 cents per share, which excludes an impairment charge.

Analysts polled by Thomson Financial expect, on average, profit of 70 cents per share.

Profit for the quarter ended May 3 fell 82 percent to $3 million, or 2 cents per share, compared with $17 million, or 11 cents per share a year ago. However, excluding one-time charges, net income was 14 cents per share, which matched analyst expectations.

Citi Investment Research analyst Kate McShane said that the Foot Locker's outlook could be overly optimistic as a result of soft consumer spending and the potential for higher-than-planned markdowns. She has a "Hold" rating on shares and a $14 price target.

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