FOOT LOCKER STUMBLE: Foot Locker Inc. shares tumbled 6.4 percent to $23.65 Tuesday on the New York Stock Exchange after the retailer cut its profit outlook for the second quarter, citing sales declines in Europe. The firm expects profits of 27 cents to 29 cents a share in the quarter, below its earlier guidance of 32 cents to 35 cents a share. Foot Locker's sales for the period ended July 30 fell by high single digits at its European stores, which offset gains in the U.S., Canada and the Asia-Pacific region. Overall sales for the second quarter rose 3 percent to $1.31 billion from $1.27 billion, while same-store sales edged up 1.3 percent.
LAWSUIT AGAINST AVON: A shareholder has filed a lawsuit against Avon Products Inc., seeking class-action status, alleging the firm improperly concealed problems it faced in its overseas businesses. The complaint was filed on July 29 in Manhattan federal court on behalf of investors who purchased Avon common stock between April 8 and July 18, 2005. The complaint alleged that the cosmetics maker knew there was resistance to its expansion efforts in China and Russia and that revenue growth in Central and Eastern Europe was slowing down from forecasted levels. The suit charged the company deliberately deceived the market when it issued a number of positive statements about its performance. In a statement the company attributed the results to a decline in business in China and lower-than-anticipated growth in Central and Eastern Europe.
THAI FASHION SPOTLIGHT: The first Bangkok Fashion Week will take place Aug. 17-21 at the Queen Sirikit National Convention Center and adjacent Benjakitti Park. Activities include fashion shows by international and Thai designers; exhibition and designer showcases; a Jewelry Gala Night, and a Trade Fair for 150 brands. Participating companies and designers are from the textile and garment, gems and jewelry, and leather goods industries.
“I see things on the hanger and I’m, like, ‘I never knew that color worked on me.’ It’s things you necessarily wouldn’t choose to wear, but once you put them on, you see why Janie is who Janie is." — Lily Collins on working with former "Mad Men" costume designer, Janie Bryant on creating looks for her role as Celia Brady's in Amazon series, "The Last Tycoon." 📸@jilliansollazzo #wwdeye
EXCLUSIVE: Sarah Rutson has been tapped to Build New American Fashion Group. The parent of Joie, Equipment and Current/Elliott hired the merchant to rev up its brands and expand its portfolio into designer, beauty and lifestyle categories. Read more on WWD.com, link in bio. #wwdfashion
Michael Kors' $1.3B Jimmy Choo deal has the company squaring off with Coach Inc. as both seek to build American powerhouses. Coach bought Stuart Weitzman in 2015 and Kate Spade just two weeks ago, but Michael Kors' acquisition may be putting pressure on its rival in the new push for scale. #wwdnews (📷: George Chinsee)
Meet actress Lucy Boynton, who plays opposite Naomi Watts in the recently released Netflix series "Gypsy." Boynton stopped by WWD to talk about her upcoming projects and her nomadic lifestyle. Get all the details on WWD.com. #wwdeye (📷: @dandoperalski)