Foot Locker reports strong sales growth
By Prachi Singh
4 Mar 2019
For its fourth quarter to February 2, 2019, Foot Locker, Inc. reported net income of 158 million dollars or 1.39 cents per share compared to a net loss of 49 million dollars or 40 cents per share, for the 14 weeks of fiscal 2017. On a non-GAAP basis, the company said, it earned 1.56 cents per share, a 37 percent increase over the comparable 13-week non-GAAP earnings per share of 1.14 cents in 2017. Fourth quarter comparable-store sales increased 9.7 percent, while total sales increased 2.8 percent to 2,272 million dollars and excluding the effect of foreign exchange rate fluctuations, total sales increased 4.2 percent.
“The fundamentals of our core business remain strong and led to meaningful improvement in our financial results, not only during the fourth quarter but throughout 2018,” said Richard Johnson, Chairman and Chief Executive Officer of Foot Locker in a statement, adding, “Looking at 2019, we believe that by maintaining our focus on bringing differentiated experiences to youth culture, we can continue to elevate our financial performance by generating a mid-single digit comparable sales gain and another double-digit percentage increase in earnings per share.”
Foot Locker’s sales increase by 2 percent in FY18
Sales for 2018 were 7,939 million dollars, an increase of 2 percent, while comparable-store sales increased 2.7 percent and excluding the effect of foreign currency fluctuations, total sales increased 1.7 percent. The company’s net income increased to 541 million dollars in 2018 or 4.66 cents per share. In the 53-week fiscal 2017, the company reported net income of 284 million dollars or 2.22 cents per share. On a non-GAAP basis, earnings per share totalled 4.71 cents in 2018, an 18 percent increase over last year’s 3.99 cents.
“We delivered a gain in our gross margin rate above the guidance we provided at the beginning of the year, achieved an inventory turn above our long-term target, and made important investments, both directly in our business and by taking strategic stakes in other companies, which we believe will drive long-term growth,” added Lauren Peters, Executive Vice President and Chief Financial Officer.
During the fourth quarter, the company opened 11 new stores, remodelled or relocated 33 stores, and closed 56 stores and operated 3,221 stores in 27 countries in North America, Europe, Asia, Australia, and New Zealand at February 2, 2019. In addition, the company said, 112 franchised Foot Locker stores were operating in the Middle East, as well as 10 franchised Runners Point stores in Germany.