EX-99.1 2 c69741_ex99-1.htm

EXHIBIT 99.1

(FOOT LOCKER, INC. LOGO)

N E W S  R E L E A S E

 

 

 

 

Contact:  

John A. Maurer

 

 

Vice President,

 

 

Treasurer and Investor Relations

 

 

Foot Locker, Inc.

 

 

(212) 720-4092

FOOT LOCKER, INC. REPORTS FIRST QUARTER FINANCIAL RESULTS

 

 

Earnings Per Share of $0.83, a Record Quarterly Result

Comparable-Store Sales Increase 9.7 Percent

Gross Margin Rate Increases 130 Basis Points

NEW YORK, NY, May 18, 2012 – Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its first quarter ended April 28, 2012.

Financial Results
Net income for the Company’s first quarter ended April 28, 2012 was $128 million, or $0.83 per share, compared with net income last year of $94 million, or $0.60 per share, an increase of 38 percent. First quarter sales increased 8.7 percent to $1,578 million, as compared with sales of $1,452 million for the corresponding prior-year period. First quarter comparable-store sales increased 9.7 percent. Excluding the effect of foreign currency fluctuations, total sales for the first quarter increased 9.8 percent.

“2012 has gotten off to an outstanding start, with our first quarter results representing the highest level of quarterly earnings in the Company’s history as an athletic business,” said Ken C. Hicks, Chairman of the Board and Chief Executive Officer of Foot Locker, Inc. “The first quarter continued our recent track record of meaningful sales and profit increases over the comparable prior-year periods. We remain focused on executing the initiatives of our updated strategic plan and objectives in order to continue to drive our strong financial performance.”

Financial Position
Merchandise inventory at the end of the first quarter was $1,146 million, which was $13 million, or 1.1 percent, lower than at the end of the same period last year.

During the first quarter of 2012, the Company repurchased 878,700 shares of its common stock for approximately $27 million under the Company’s $400 million share repurchase program which, as previously announced, its Board of Directors authorized earlier this year. At the end of the first quarter, the Company’s cash and short-term investments totaled $909 million. The Company’s total cash position, net of debt, was $774 million, a $111 million increase over the same time last year. “Our strong financial position will enable us to increase our investment in what we believe will be high-return growth opportunities, as we pursue the elevated financial goals of our updated long range plan,” stated Lauren B. Peters, Executive Vice President and Chief Financial Officer.

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Foot Locker, Inc. 112 West 34th Street, New York, NY 10120


Store Base Update
During the first quarter, the Company opened 25 new stores, remodeled or relocated 53 stores, and closed 34 stores. As of April 28, 2012, the Company operated 3,360 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 36 Foot Locker franchised stores were operating in the Middle East and South Korea.

The Company is hosting a live conference call at 9:00 a.m. (EDT) today, May 18, 2012 to discuss these results and provide comments on the current business environment and trends. This conference call may be accessed live by dialing 888-446-3850 (U.S. and Canada) or 630-691-2739 (International) using the passcode 32393768, or via the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. Please log on to the website 15 minutes prior to the call in order to download any necessary software. A replay of the call will be available via webcast from the same Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com through May 25, 2012.

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, further deterioration of global financial markets, economic conditions worldwide, further 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. 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.

- MORE -


FOOT LOCKER, INC.
Condensed Consolidated Statements of Operations
(unaudited)
Periods ended April 28, 2012 and April 30, 2011
(In millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

First Quarter
2012

 

First Quarter
2011

 

 

 


 


 

Sales

 

$

1,578

 

$

1,452

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,041

 

 

977

 

Selling, general and administrative expenses

 

 

306

 

 

298

 

Depreciation and amortization

 

 

29

 

 

27

 

Interest expense, net

 

 

1

 

 

2

 

Other Income, net

 

 

 

 

(1

)

 

 



 



 

 

 

 

1,377

 

 

1,303

 

 

 



 



 

Income before income taxes

 

 

201

 

 

149

 

Income tax expense

 

 

73

 

 

55

 

 

 



 



 

Net income

 

$

128

 

$

94

 

 

 



 



 

 

 

 

 

 

 

 

 

Diluted EPS:

 

 

 

 

 

 

 

 

 



 



 

Net income

 

$

0.83

 

$

0.60

 

 

 



 



 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

 

 

154.3

 

 

155.7

 

- MORE -


FOOT LOCKER, INC.
Condensed Consolidated Balance Sheets
(unaudited)
(In millions)

 

 

 

 

 

 

 

 

 

 

April 28,
2012

 

April 30,
2011

 

 

 


 


 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

909

 

$

799

 

Merchandise inventories

 

 

1,146

 

 

1,159

 

Other current assets

 

 

196

 

 

182

 

 

 



 



 

 

 

 

2,251

 

 

2,140

 

 

 



 



 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

438

 

 

400

 

Deferred tax assets

 

 

288

 

 

297

 

Other assets

 

 

261

 

 

283

 

 

 



 



 

 

 

$

3,238

 

$

3,120

 

 

 



 



 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

357

 

$

346

 

Accrued and other liabilities

 

 

278

 

 

260

 

 

 



 



 

 

 

 

635

 

 

606

 

 

 



 



 

 

 

 

 

 

 

 

 

Long-term debt and obligations under capital leases

 

 

135

 

 

136

 

Other liabilities

 

 

255

 

 

244

 

SHAREHOLDERS’ EQUITY

 

 

2,213

 

 

2,134

 

 

 



 



 

 

 

$

3,238

 

$

3,120

 

 

 



 



 

- MORE -


FOOT LOCKER, INC.
Store and Estimated Square Footage
(unaudited)
(Square footage in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

April 28,
2012

 

April 30,
2011

 

May 1,
2010

 

 

 


 


 


 

Foot Locker U.S.

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

1,100

 

 

1,139

 

 

1,162

 

Gross square footage

 

 

4,400

 

 

4,583

 

 

4,688

 

Selling square footage

 

 

2,574

 

 

2,710

 

 

2,776

 

 

 

 

 

 

 

 

 

 

 

 

Footaction

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

290

 

 

307

 

 

317

 

Gross square footage

 

 

1,340

 

 

1,417

 

 

1,467

 

Selling square footage

 

 

840

 

 

890

 

 

923

 

 

 

 

 

 

 

 

 

 

 

 

Lady Foot Locker

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

326

 

 

367

 

 

405

 

Gross square footage

 

 

728

 

 

815

 

 

894

 

Selling square footage

 

 

421

 

 

469

 

 

512

 

 

 

 

 

 

 

 

 

 

 

 

Kids Foot Locker

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

290

 

 

292

 

 

306

 

Gross square footage

 

 

696

 

 

698

 

 

731

 

Selling square footage

 

 

406

 

 

407

 

 

427

 

 

 

 

 

 

 

 

 

 

 

 

Champs Sports

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

539

 

 

539

 

 

549

 

Gross square footage

 

 

2,862

 

 

2,874

 

 

2,928

 

Selling square footage

 

 

1,878

 

 

1,907

 

 

1,944

 

 

 

 

 

 

 

 

 

 

 

 

CCS

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

22

 

 

12

 

 

3

 

Gross square footage

 

 

51

 

 

31

 

 

9

 

Selling square footage

 

 

34

 

 

20

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

Foot Locker International

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

793

 

 

764

 

 

743

 

Gross square footage

 

 

2,315

 

 

2,200

 

 

2,161

 

Selling square footage

 

 

1,167

 

 

1,119

 

 

1,095

 

 

 

 

 

 

 

 

 

 

 

 

Total Stores Operated

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

3,360

 

 

3,420

 

 

3,485

 

Gross square footage

 

 

12,392

 

 

12,618

 

 

12,878

 

Selling square footage

 

 

7,320

 

 

7,522

 

 

7,683

 

 

 

 

 

 

 

 

 

 

 

 

Total Franchised Stores

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

36

 

 

27

 

 

22

 

Gross square footage

 

 

87

 

 

88

 

 

78

 

Selling square footage

 

 

59

 

 

58

 

 

53

 

-XXX-