The investigation centers on whether the company provided misleading information regarding the financial health of its primary brand and its Foot Locker business. In May, management had expressed optimism, raising its non-GAAP operating income guidance to between $1.71 billion and $1.83 billion. By August 25, that outlook was slashed to a range of $1.46 billion to $1.56 billion.

This shift in guidance accompanied second-quarter results that fell short of Wall Street expectations. Revenue hit approximately $5.59 billion, failing to reach the anticipated $5.64 billion, while earnings per share landed at $3.53 against a projected $3.78. Beyond the core operating income, the company walked back expectations for Foot Locker, moving from forecasted growth to a potential decline of 2%. Shareholders who incurred losses following these disclosures are currently being invited to have their claims reviewed.