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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 3, 1998
FOOTSTAR, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-11681 22-3439443
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(Commission File Number) (IRS Employer Identification No.)
933 MacArthur Boulevard
Mahwah, New Jersey 07430
(Address of principal executive offices)
(201) 934-2000
(Registrant's telephone number, including area code)
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Item 5. Other events.
On December 3, 1998, Footstar, Inc. (the "Company") announced November
sales results. A copy of the Company's press release dated December 3, 1998 is
attached hereto as Exhibit 99.
By factoring in sales results through November alone, the Company
currently project that earnings have been negatively impacted by approximately
$.30 to $.35 per diluted share. Any potential negative deviation from expected
earnings for December would, of course, increase this amount.
Except for the historical information contained herein, the matters
discussed in this Current Report are forward looking statements including those
regarding the Company's sales trends and earnings expectations for the fourth
quarter. These statements involve a number of risks and uncertainties that may
cause actual results to differ from those expressed in any of the forward
looking statements. Such risks and uncertainties include, but are not limited
to, uncertainties during the remainder of the quarter related to consumer demand
for footwear, warmer than expected weather, consumer acceptance of our
merchandise mix and retail locations, the effect of competitive products and
pricing, the availability of products and carriers of products, and the other
risks detailed in the Company's Securities and Exchange Commission filings. The
Company undertakes no obligation to update forward looking statements to reflect
events and circumstances after the date made.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99 Press Release of Footstar, Inc. dated December 3, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registration has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
FOOTSTAR, INC.
Dated: December 4, 1998 By: CARLOS E. ALBERINI
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Name: Carlos E. Alberini
Title: Sr. Vice President and
Chief Financial Officer
Investor Contact: Carlos Alberini Media Contact: Wendi Kopsick
Sr. Vice President & CFO Jim Fingeroth
Footstar, Inc. Kekst and Company
(201) 760-4008 (212) 521-4800
FOR IMMEDIATE RELEASE
FOOTSTAR REPORTS NOVEMBER SALES RESULTS
MAHWAH, NEW JERSEY, December 3, 1998 - Footstar, Inc. (NYSE:FTS) today reported
that comparable store sales for the four-week period ended November 28, 1998
decreased 12.7%. The Company's Footaction division had a comparable store sales
decline of 20.7% in the period, while Meldisco's comparable store sales
decreased 9.5%. Footstar's total sales for the four-week period decreased 8.5%
to $145.5 million from $159.1 million for the prior-year period. Footaction's
total sales declined 14.5% to $40.6 million and Meldisco's decreased 6.0% to
$104.9 million.
Mickey Robinson, Chairman and Chief Executive Officer, commented, "Very
difficult conditions have persisted in our two businesses, resulting in
disappointing November sales. Footaction's results have been impacted by
heightened competitions, sluggish consumer demand for athletic footwear
partially caused by the NBA strike and the unseasonably warm weather affecting
sales of outerwear apparel. The warmer November weather also affected Meldisco's
sales significantly; the sales loss in winter boots alone represented more than
the overall sales decline for the division in the month.
"In light of these conditions, we now believe that earnings per diluted share
for the fourth quarter will be substantially below the $1.00 to $1.05 range
previously anticipated. We currently project that the lower than expected sales
in November alone could negatively impact earnings for the period by $.30 to
$.35 per diluted share," Mr. Robinson said. "We will continue to monitor results
and to manage our two businesses carefully, with a strict eye on cost control
and inventory management, as we become even more selective heading into 1999 in
the use of capital for new stores and conversions."
For the forty-seven week period ended November 28, 1998, Footstar's same store
sales decreased 0.8%. Footaction's same store sales rose 0.4%, and Meldisco's
same store sales decreased 1.4%. Footstar's total sales for the forty-seven week
period increased 2.8% to $1,599.4 million from $1,555.8 million for the
prior-year period.
As of November 28, 1998, Footstar operated 570 Footaction stores, which sell
branded athletic footwear and apparel, and 2,540 Meldisco leased footwear
departments.
Except for the historical information contained herein, the matters discussed in
this release are forward looking statements that involve risks and uncertainties
that may cause actual results to differ fro those expressed in any of the
forward looking statements. Such risks and uncertainties include, but are not
limited to, uncertainties during the remainder of the quarter related to
consumer demand for footwear, warmer than expected weather, consumer acceptance
of our merchandise mix and retail locations, the effect of competitive products
and pricing, the availability of products, and the other risks detailed in the
Company's Securities and Exchange Commission filings.
- ATTACHMENT FOLLOWS -
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<TABLE>
<CAPTION>
FOOTSTAR, INC.
SAME STORE SALES
CHANGE FROM PRIOR YEAR
Four Weeks Forty-Seven Weeks
Ended Ended
November 28, 1998 November 28, 1998
<S> <C> <C>
Footaction (20.7%) 0.4%
Meldisco ( 9.5%) (1.4%)
Footstar, Inc. (12.7%) (0.8%)
</TABLE>
