Foot Locker Closing More Stores, Considers Sale

NEW YORK CITY-Foot Locker’s management expects to close 250 of its 4,000 stores this year, twice the number that were previously forecast. The company has also retained Lehman Brothers to assist in evaluating strategic alternatives, including a buyout by a private-equity firm.

Executives now expect a second-quarter loss of between 17 cents and 20 cents per share due to the clearance of merchandise inventory. Their previous estimate for the period, which will be reported Aug. 22, was a gain of 15 cents to 20 cents.

After store closures, management predicts profitable results starting next year. Additionally, the company is ramping up its Foot Locker Europe division, with plans to open 30 stores on the continent next year.