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Foot Locker ( FL ) shares tumbled after the company posted an unexpected third-quarter loss and cut its full-year outlook before the market opened Wednesday.

The athletic sneaker retailer reported a loss of $33 million or 34 cents per share, compared to a profit of $28 million or 30 cents per share a year earlier. Analysts tracked by Visible Alpha had called for profit to increase year-over-year to $37 million. Revenue was $1.96 billion, down 1.4% year-over-year and above the Street’s expectations.

CEO Mary Dillon said the loss occurred as "[c]onsumer spending trends softened following the peak back-to-school period" and "the promotional environment was more elevated than anticipated." Selling, general, and administrative expenses (SG&A) , which includes marketing spending, rose 8% year-over-year to $482 million.

Foot Locker also got more conservative with its full-year forecast. It now expects sales to fall between 1.5% and 1% from $8.15 billion in 2023, compared to a prior range of a 1% loss to 1% growth. Adjusted earnings per share are expected to land between $1.20 and $1.30, down from $1.50 to $1.70. Analysts had called for $1.55.

Shares of Foot Locker dropped as much as 13% Wednesday morning and have fallen more than 30% in 2024.

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