Foot Locker has released its preliminary first quarter results, showing a 2.6 per cent decrease in comparable sales year-on-year. 

The brand expects to see a net loss of $363 million as compared to an $8 million net income from the same quarter last year. 

A full valuation allowance on the company’s deferred tax assets and deferred tax costs related to its European business totalling $124 million was recorded. 

“Despite making ongoing progress with our Lace Up Plan, our preliminary first quarter results are below our expectations as we experienced softer traffic trends globally,” said CEO Mary Dillon.

“We continued to manage our promotional levels and maintain inventory and expense discipline, and we have taken actionable steps to advance these efforts and remain nimble and well positioned in an uncertain macroeconomic backdrop.”

Foot Locker released a separate press release today, confirming its acquisition by Dick’s Sporting Goods under a merger agreement. 

The transaction implied an equity value of around $2.4 billion and an enterprise value of approximately $2.5 billion. 

Footlocker anticipates releasing its full first-quarter results before markets open on May 29.