In a recent press release Foot Locker Inc. reported that its fiscal first-quarte

In a recent press release Foot Locker Inc. reported that its fiscal first-quarter net income fell 46% due to losses related to discontinued operations but earnings from continuing operations jumped 19% amid a modest increase in sales. The specialty athletic retailer said net income was $20 million for the quarter ended May 4 compared with net income of $37 million a year earlier. The latest results included a loss of $18 million from discontinued operations. Last year the company had earnings of $5 million or four cents a share from discontinued operations. Foot Locker said earnings from continuing operations were $38 million compared with $32 million a year earlier. Explain why net income often referred to as the bottom line is not always a good predictor of future income and discuss how Foot Lockers press release relates to its earnings quality.