NEW YORK, March 20, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Foot Locker, Inc. ("Foot Locker" or the "Company") (NYSE: FL).
A class action complaint has been filed in the United States District Court for the Eastern District of New York against Foot Locker and certain officers of the Company on behalf of persons or entities that acquired Foot Locker's common stock between August 19, 2016 and August 17, 2017, inclusive (the "Class") alleging violations of the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and failed to disclose that: (1) Foot Locker's vendors were transitioning to selling through various online retailers, diminishing the utility of Foot Locker's large number of brick and mortar stores and the once-high value of its exclusivity relationships with those vendors; (2) competition with online retailers had increased the pricing competition Foot Locker faced while concomitantly lowering demand at its stores; and (3) as a result, defendants' statements about Foot Locker's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
According to the complaint, the truth about these matters was revealed in disclosures on May 19, 2017 and August 18, 2017, when Foot Locker released disappointing results and admitted to being significantly impacted by a trend toward online retailers. Foot Locker's May 19, 2017 financial release disclosed EPS at the bottom of the Company's recently-reduced guidance, and that weakness was expected to continue into the second half of the year. Foot Locker's August 18, 2017 release announced a revenue decline of 4.4% year-over-year, and that its profits fell to just $51 million, or $0.39 per share, "drastically below the $0.90 per share the company had led investors to expect, and well below the $127 million, or $0.94 per share, the Company had reported in 2Q16" according to the complaint. Additionally, Foot Locker stated that it would close approximately 130 stores, more than the 100 stores it had previously announced it would close.
Following these disclosures, Foot Locker's common stock declined by $11.73 per share or almost 17% on May 19, 2017, and by $13.32 per share, nearly 28%, on August 18, 2017.
If you are a member of the proposed Class, you may move the court no later than May 8, 2018 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP