Foot Locker Inc. forecast earnings below Wall Street’s expectations as it struggles to lure budget-conscious consumers who continue to curb spending.

The sneaker retailer expects full-year profit of $1.35 to $1.65 a share, while analysts were looking for $1.72, on average. Comparable store sales are expected to grow 1 percent to 2.5 percent, slightly missing estimates at the midpoint of that range.

Foot Locker’s shares were up around 1 percent in premarket trading in New York. The company’s stock is down more than 20 percent this year through Tuesday’s close.

Weaker consumer demand and a shift toward shoppers seeking the best deals hurt performance at Foot Locker, which operates more than 2,400 stores. Chief executive officer Mary Dillon said in a statement that the company will continue to face uncertainty due to promotional pressures, especially in the first half of the year.

Dillon, who joined the company in 2022, has looked to strengthen the business in large part by renovating its stores — the company revamped more than 400 locations in 2024. She is also leaning into a customer loyalty program and overhauling digital operations.

Comparable store sales, a key retail metric, rose 2.6 percent in the fourth quarter, better than analysts expected.

The New York-based company plans to move its headquarters to Florida by the end of this year as a part of its efforts to cut costs and boost performance.

By Truth Headlam

Learn more:

Foot Locker Plummets as Investors Unimpressed by Progress

Foot Locker Inc. exceeded sales expectations with a 2.6 percent gain and $1.9 billion in revenue, but investors were underwhelmed by the unchanged annual sales forecast, leading to a 12 percent drop in shares.