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.