Foot Locker grows Q4 earnings and sales
- Q4 earnings up 25%
- Total sales grow 6.7%
- Comparable sales up 10.2%
Foot Locker says it remains intently focused on executing its key strategies
US speciality athletic retailer Foot Locker said it remains focused on executing its key strategies as it booked an increase in fourth-quarter earnings and sales.
In the three months to the end of January, net income reached US$146m, a 25% increase on earnings of $121m a year earlier. During the quarter, the company realised a gain from the sale of a property and wrote down a trademark.
Fourth quarter comparable-store sales increased 10.2%, while total sales were up 6.7% to $1.9bn this year. Excluding the effect of foreign currency fluctuations, total sales grew 10.1%.
"We remain intently focused on executing our key strategies," said CEO Richard Johnson. "Along with elevating the level of investments in our stores, digital capabilities, support facilities, and - most importantly - our people, that focus has enabled us to develop into a high-performance company that has reached record heights of financial and operational success. In fact, we have approached or surpassed many of the goals in our most recent set of long-term objectives, and I am very proud of the entire team at Foot Locker for this excellent accomplishment.”
For the full year, the company recorded net income of $520m, compared to $429m last year, while total sales increased 9.9% to $7.15bn, the highest level of sales ever recorded by Foot Locker. Comparable-store sales grew 8%.
FBR&Co analyst Susan Anderson, noted: "We were particularly encouraged with the comp, which was up significantly on top of a tough compare (extremely rare in specialty retail). We think it executed well over the holiday season with elevated marketing ('Week of Greatness') and launches that drove traffic."
Continued pressure from internet retailing, both domestic and international, have driven many apparel and footwear specialist retailers to pursue omni-channel strategies, whereby they focus on creatin...
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