Shares of Foot Locker (NYSE: FL) fell 39.7% in May, according to data from S&P Global Market Intelligence. The athletic apparel and footwear retailer's first-quarter earnings report fell far short of Wall Street's expectations, followed by a stream of bearish post-earnings reports on the stock. If negative market reactions were football penalties, this flag stands somewhere between unsportsmanlike conduct and an illegal blindside block -- some of the harshest penalties in the football rulebook.

The official analyst consensus estimates for the first quarter had called for earnings near $0.81 per share of top-line sales of roughly $2 billion. In reality, Foot Locker could only muster $0.70 of earnings per share and $1.93 billion in revenue.

Foot Locker's management pointed to a tough macroeconomic environment and slashed full-year earnings guidance by nearly 40%. On the upside, the dividend held steady at $0.40 per share, per quarter, despite some speculation about an upcoming payout cut.

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Source Fool.com