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Blog Coverage Athletics Retailer Footlocker Unveiled Capital Allocation Plan for 2017

Upcoming AWS Coverage on SKECHERS USA Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 17, 2017 / Active Wall St. blog coverage looks at the headline from retailer of athletic footwear and apparel Foot Locker, Inc. (NYSE: FL) as the Company announced that its Board of Directors had approved three capital allocation initiatives which will help in enhancing shareholder value and attain its long-term financial goals. The details of the Capital Allocation Plans for the year 2017 were disclosed by the Company on February 15, 2017. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Foot Locker's competitors within the Textile - Apparel Footwear & Accessories space, SKECHERS USA, Inc. (NYSE: SKX), reported on February 10, 2017, financial results for Q4 and year ended December 31, 2016. AWS will be initiating a research report on SKECHERS USA in the coming days.
Today, AWS is promoting its blog coverage on FL; touching on SKX. Get all of our free blog coverage and more by clicking on the link below:

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Foot Locker is a New York based global retailer of athletic footwear and apparel. As on January 28, 2017, the Company operates over 3,363 stores across 23 countries including North America, Europe, Australia, and New Zealand. Its brands include Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, Champs Sports, and SIX:02, Runners Point, and Sidestep. Its digital presence includes footlocker.com, Eastbay.com, and six02.com.

Highpoints of the capital allocation initiatives

The Capital allocation initiatives approved by the Board of Foot Locker are:

  • Declaration of quarterly cash dividend of $0.31 per share payable on April 28, 2017. It equals to the annualised dividend of $1.24 per share. The current quarterly dividend is 13% higher than the previous quarter's dividend.
  • A $1.2 billion share repurchase program spread over three years till January 2020. This is $0.2 billion higher than the previously declared repurchase program of $1 billion in 2015. As per the repurchase program announced two years back the Company has already utilized $795 million.
  • The Board approved a capital expenditure of $277 million for FY17. It is slightly lower than the capital expenditure of $284 million approved for FY16. The funds allocated would be utilised for certain strategic initiatives by the Company viz., opening new stores at key locations across the world, remodelling of its fleet of stores, expansion of footprint in Europe as well as global expansion of its Kids Foot Locker brand, upgradation of technology and distribution infrastructure.

Sharing his thoughts on the Capital Allocation plan, Richard Johnson, Chairman and CEO of Foot Locker said:

"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."

In November 2016, Foot Locker had disclosed its Q3 2016 results ending on October 29, 2016. It reported a GAAP Earnings of $157 million or $1.17 per share. Its Q3 2016 comparable-store sales increased 4.7% and Total sales was $1,886 million. During the Q3 2016, the Company opened 21 new stores, remodeled or relocated 40 stores, and closed 28 stores.

Foot Locker is expected to disclose its results for Q4 2016 and FY16 on February 28, 2017.

Stock Performance

Foot Locker's share price finished yesterday's trading session at $70.50, slightly up 0.18%. A total volume of 1.70 million shares exchanged hands. The stock has advanced 17.65% and 7.05% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 15.20 and has a dividend yield of 1.56%.

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SOURCE: Active Wall Street