Foot Locker net income grows to 664 mn dollars in FY16

Fourth quarter net income at Foot Locker for the fourth quarter ended January 28, 2017 was 189 million dollars or 1.42 dollars per share, compared with net income of 158 million dollars or 1.14 dollars per share in the same period of 2015. The company’s net income increased to 664 million dollars in 2016 or 4.91 dollars per share, compared to net income of 541 million dollars or 3.84 dollars per share in 2015.

“Generating our seventh consecutive year of meaningful sales and profit growth is a strong testament to Foot Locker’s solid position at the center of sneaker culture,” said Richard Johnson, Chairman of the Board and Chief Executive Officer in a media release, adding, “Due in part to the change in the cadence of income tax refund check distribution, we are facing a challenging retail sales environment as we enter 2017; however, we believe the strategic initiatives we have in place, coupled with our strong vendor relationships, will enable us to deliver another year of record performance.”

Fourth quarter and FY16 result highlights

Fourth quarter comparable-store sales increased 5 percent, while total sales increased 5.3 percent to 2,113 million dollars this year, compared with sales of 2,007 million dollars for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the fourth quarter increased 6.1 percent. The company’s gross margin rate improved to 33.7 percent of sales from 33.6 percent a year ago.

Sales for 2016 were 7,766 million dollars, an increase of 4.8 percent compared to sales of 7,412 million dollars in fiscal 2015. Full-year comparable store sales increased 4.3 percent. Excluding the effect of foreign currency fluctuations, total sales increased 5.2 percent. On a non-GAAP basis, earnings per share totaled 4.82 dollars in 2016, a 12 percent increase over last year.

Commenting on the outlook, Lauren Peters, Executive Vice President and Chief Financial Officer added, “Although we currently face a softer sales environment than at this time last year, we are planning for a mid-single digit comparable sales gain and a double-digit earnings per share increase for the full year of 2017. As announced last week, our Board of Directors authorized another double-digit percentage increase in our quarterly dividend and a new share repurchase program that is 20 percent larger than our prior program.”

During the fourth quarter, the company opened 20 new stores, remodeled or relocated 59 stores, and closed 51 stores. As of January 28, 2017, the company operated 3,363 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 59 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 15 franchised Runners Point stores in Germany.

Picture:Facebook/Foot Locker