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Foot Locker reports double-digit jump in FY15 earnings

By Prachi Singh

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Management |REPORT

Foot Locker reported net income of 158 million dollars for the 13 weeks ended January 30, 2016, which equates to earnings of 1.14 dollars per share, an increase of 13 percent. For fiscal year 2015, the company reported net income of 541 million dollars, or 3.84 dollars per share. On a non-GAAP basis, earnings were 4.29 dollars per share in 2015, an increase of 20 percent.

“In 2015, we continued to deliver outstanding financial performance across channels, geographies, banners, and product categories,” said Richard Johnson, President and Chief Executive Officer, adding, “We began the year by introducing a revised strategic framework and priorities, as well as elevated long-term financial objectives. We believe we can continue to elevate our financial performance in 2016 by generating a mid-single digit comparable sales gain and another double digit percentage increase in earnings per share.”

Q4 and full year comparable store sales up

Fourth quarter comparable-store sales increased 7.9 percent and total fourth quarter sales increased 5 percent to 2,007 million dollars. Excluding the effect of foreign currency fluctuations, total sales for the fourth quarter increased 8.8 percent. Total sales increased 3.6 percent in 2015 to 7,412 million dollars, the highest level of sales ever recorded by the company as Foot Locker and comparable-store sales increased 8.5 percent.

In 2015 the company generated its sixth consecutive double-digit percentage increase in annual earnings per share and its fifth consecutive year of record earnings as Foot Locker.

“We recorded many all-time best performances for our company in 2015, including reaching an adjusted EBIT rate of 12.8 percent,” stated Lauren Peters, Executive Vice President and Chief Financial Officer, adding, “We remain focused on productivity, boosting our return on invested capital to 15.8 percent and our sales per gross sq. ft. to 504 dollars.”

The company opened 111 new stores, remodelled or relocated 209 stores, and closed 151 stores during fiscal 2015. As of January 30, 2016, it operated 3,383 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 48 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 16 franchised Runners Point stores in Germany.

Foot Locker