NEW YORK, Feb. 15, 2017 /PRNewswire/ -- Foot Locker, Inc.
(NYSE: FL), the New York-based
specialty athletic retailer, announced today that its Board of
Directors has authorized three capital allocation initiatives that
meaningfully enhance shareholder returns while also sustaining a
strong level of investment in its business as it works to attain
its long-term financial goals. First, the Board of Directors
declared a quarterly cash dividend on the Company's common stock of
$0.31 per share, which will be
payable on April 28, 2017 to
shareholders of record on April 13,
2017. This dividend declaration represents a 13 percent
increase over the Company's previous quarterly per-share amount and
is equivalent to an annualized rate of $1.24 per share.
Second, the Board of Directors approved a new 3-year,
$1.2 billion common share repurchase
program extending through January
2020, replacing the Company's previous $1 billion program. Through the end of
fiscal 2016, the Company had spent $795
million under that program since it was announced two years
ago.
Third, the Board of Directors approved a $277 million capital expenditure program for
2017, close to the $284 million of
capital that the Company invested in 2016. The Company will
continue to spend capital to build on its key strategic
initiatives, including opening exciting new retail destinations in
key cities around the world; extending its remodel programs to more
of its existing store fleet; expanding geographically, particularly
in Europe and with its Kids Foot
Locker banner globally; building even stronger capabilities in its
direct-to-customer segment; and upgrading its technology and supply
chain infrastructure.
"We have seen that the capital investments Foot Locker, Inc. has
made in recent years have been critical to elevating our financial
performance and positioning us at the center of sneaker culture,"
said Richard Johnson, Chairman and
Chief Executive Officer. "With the landscape of retail
changing rapidly, our Board of Directors agrees that leading that
change in the future requires ongoing investment in our business.
At the same time, our Company remains committed to returning significant amounts
of cash to shareholders, and the Board's actions to both increase
our dividend at a double-digit percentage rate for the seventh
straight year and increase our share repurchase authorization by 20
percent is clear evidence of that commitment."
Foot Locker, Inc. is a specialty athletic retailer that, as of
January 28, 2017, operated 3,363
stores in 23 countries in North
America, Europe,
Australia, and New Zealand. Through its Foot Locker,
Footaction, Lady Foot Locker, Kids
Foot Locker, Champs Sports, SIX:02, Runners Point, and Sidestep
retail stores, as well as its direct-to-customer channels,
including footlocker.com, Eastbay.com, and six02.com, the Company
is a leading provider of athletic footwear and apparel.
Disclosure Regarding Forward-Looking
Statements
This report contains forward-looking
statements within the meaning of the federal securities laws. Other
than statements of historical facts, all statements which address
activities, events, or developments that the Company anticipates
will or may occur in the future, including, but not limited to,
such things as future capital expenditures, expansion, strategic
plans, financial objectives, dividend payments, stock repurchases,
growth of the Company's business and operations, including future
cash flows, revenues, and earnings, and other such matters, are
forward-looking statements. These forward-looking statements are
based on many assumptions and factors which are detailed in the
Company's filings with the Securities and Exchange Commission,
including the effects of currency fluctuations, customer demand,
fashion trends, competitive market forces, uncertainties related to
the effect of competitive products and pricing, customer acceptance
of the Company's merchandise mix and retail locations, the
Company's reliance on a few key vendors for a majority of its
merchandise purchases (including a significant portion from one key
vendor), pandemics and similar major health concerns, unseasonable
weather, deterioration of global financial markets, economic
conditions worldwide, deterioration of business and economic
conditions, any changes in business, political and economic
conditions due to the threat of future terrorist activities in
the United States or in other
parts of the world and related U.S. military action overseas, the
ability of the Company to execute its business and strategic plans
effectively with regard to each of its business units, and risks
associated with global product sourcing, including political
instability, changes in import regulations, and disruptions to
transportation services and distribution.
For additional
discussion on risks and uncertainties that may affect
forward-looking statements, see "Risk Factors" disclosed in the
2015 Annual Report on Form 10-K. Any changes in such assumptions or
factors could produce significantly different results. The Company
undertakes no obligation to update forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Contact:
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John A.
Maurer
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Vice
President,
|
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Treasurer and
Investor Relations
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Foot Locker,
Inc.
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(212)
720-4092
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SOURCE Foot Locker, Inc.