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EX-99.2 - FOOT LOCKER, INC.c68752_ex99-2.htm
8-K - FOOT LOCKER, INC.c68752_8k.htm

EXHIBIT 99.1

(FOOT LOCKER, INC. LOGO)

NEWS  RELEASE

 

 

 

 

Contact:

John A. Maurer

 

 

Vice President,

 

 

Treasurer and Investor Relations

 

 

Foot Locker, Inc.

 

 

(212) 720-4092

FOOT LOCKER, INC. REPORTS 2011 FOURTH QUARTER RESULTS

 

 

 

 

Net Income of $0.53 Per Share, 47 Percent Above Last Year

 

Comparable-Store Sales Increased 7.5 Percent

 

Eighth Consecutive Quarter of Sales and Profit Growth


 

NEW YORK, NY, March 1, 2012 – Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its fourth quarter and full year ended January 28, 2012.

 

Fourth Quarter Results

The Company reported net income of $81 million, or $0.53 per share, for the fourth quarter of 2011. These results included an after-tax charge of $3 million, or $0.02 per share, for the impairment of certain intangible assets. In the year-ago period, the Company reported net income of $57 million, or $0.36 per share, which included an after-tax charge of $4 million, or $0.03 per share, for the impairment of certain intangible assets, net of the partial recovery of a short-term investment that was written down in 2008.

 

Excluding the net charges in both years, fourth quarter non-GAAP net income was $84 million, or $0.55 per share, in 2011 versus $61 million, or $0.39 per share, in 2010. This represents a 41 percent increase in the adjusted net income per share amounts.

 

Fourth quarter comparable-store sales increased 7.5 percent. Total fourth quarter sales increased 7.9 percent, to $1,502 million this year, compared with sales of $1,392 million for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the fourth quarter increased 8.2 percent.

 

“The strategies our team identified and began implementing two years ago have elevated our financial and operational performance to new heights,” said Ken C. Hicks, Chairman of the Board and Chief Executive Officer of Foot Locker, Inc. “As a result of the efforts of our entire team, we approached or surpassed many of the financial goals the organization set for ourselves in just the second year of our current five year plan.”

 

Fiscal Year Results

For the fiscal year, the Company reported net income of $278 million, or $1.80 per share. These results included the fourth quarter after-tax charge of $3 million mentioned above. Last year, the Company reported net income of $169 million, or $1.07 per share, including the net charge of $4 million after-tax.

 

Excluding the net charges in both years, full year non-GAAP net income was $281 million, or $1.82 per share in 2011, an increase of 65 percent over the $1.10 per share recorded in 2010.

-- MORE --

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



 

Comparable-store sales increased 9.8 percent in 2011, and total sales increased 11.4 percent to $5,623 million, compared with sales of $5,049 million last year. Excluding the effect of foreign currency fluctuations, total sales for the full year increased 9.7 percent.

 

Financial Position

The Company’s merchandise inventory at year end was $1,069 million, which was $10 million, or 0.9 percent higher than at the end of last year.

 

During the fourth quarter of 2011, the Company repurchased 289,100 shares of its common stock for approximately $7 million. For the full year, the Company repurchased approximately 4.9 million shares for $104 million. Last month, the Company announced a new, three-year $400 million share repurchase program extending through January 2015. At the same time, the Company announced a 9 percent increase in its quarterly dividend, to 18 cents per quarter.

 

At year end 2011, the Company’s cash and short-term investments totaled $851 million, while the debt on its balance sheet was $135 million. The Company’s total cash position, net of debt, was $157 million higher than the same time last year.

 

Store Base Update

The Company opened 70 new stores, remodeled or relocated 182 stores, and closed 127 stores during fiscal 2011. At January 28, 2012, the Company operated 3,369 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 34 franchised stores were operating in the Middle East and South Korea.

 

The Company is hosting a live conference call at 9:00 a.m. (EST) on Friday, March 2, 2012 to discuss these results and provide comments on the current business environment and our outlook for 2012. This conference call may be accessed live from the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. The conference call will be available for webcast replay until 5:00 p.m. on Friday, March 9, 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, 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 foreign global 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 January 28, 2012 and January 29, 2011

(In millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter 2011

 

Fourth Quarter 2010

 

 

 


 


 

 

 

GAAP

 

Adjustments

 

Non-GAAP,
As Adjusted

 

GAAP

 

Adjustments

 

Non-GAAP,
As Adjusted

 

 

 


 


 


 


 


 


 

Sales

 

$

1,502

 

$

 

$

1,502

 

$

1,392

 

$

 

$

1,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

1,022

 

 

 

 

1,022

 

 

962

 

 

 

 

962

 

Selling, general and administrative expenses

 

 

325

 

 

 

 

325

 

 

303

 

 

 

 

303

 

Depreciation and amortization

 

 

28

 

 

 

 

28

 

 

27

 

 

 

 

27

 

Impairment (1)

 

 

5

 

 

(5

)

 

 

 

10

 

 

(10

)

 

 

Other (income) (2)

 

 

(3

)

 

 

 

(3

)

 

(2

)

 

2

 

 

 

Interest expense, net

 

 

2

 

 

 

 

2

 

 

2

 

 

 

 

2

 

 

 









 









 

 

 

 

1,379

 

 

(5

)

 

1,374

 

 

1,302

 

 

(8

)

 

1,294

 

 

 









 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

123

 

 

5

 

 

128

 

 

90

 

 

8

 

 

98

 

Income tax expense (3)

 

 

42

 

 

2

 

 

44

 

 

33

 

 

4

 

 

37

 

 

 









 









 

Net income

 

$

81

 

$

3

 

$

84

 

$

57

 

$

4

 

$

61

 

 

 









 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.53

 

$

0.02

 

$

0.55

 

$

0.36

 

$

0.03

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

 

 

153.1

 

 

 

 

153.1

 

 

156.2

 

 

 

 

156.2

 


 

 

 

Footnotes to explain adjustments

 

 

(1)

2011 and 2010 amount reflects the write-down of CCS intangible assets.

 

 

 

 

(2)

2010 amount reflects the partial recovery of a short-term investment that was written down in 2008.

 

 

 

 

(3)

2011 and 2010 amounts reflect the income tax effect of the pre-tax adjustments highlighted in footnotes above.

-- MORE --


FOOT LOCKER, INC.
Condensed Consolidated Statements of Operations
(unaudited)
Periods ended January 28, 2012 and January 29, 2011
(In millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2011

 

Fiscal 2010

 

 

 


 


 

 

 

GAAP

 

Adjustments

 

Non-GAAP,
As Adjusted

 

GAAP

 

Adjustments

 

Non-GAAP,
As Adjusted

 

 

 


 


 


 


 


 


 

Sales

 

$

5,623

 

$

 

$

5,623

 

$

5,049

 

$

 

$

5,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

3,827

 

 

 

 

3,827

 

 

3,533

 

 

 

 

3,533

 

Selling, general and administrative expenses

 

 

1,244

 

 

 

 

1,244

 

 

1,138

 

 

 

 

1,138

 

Depreciation and amortization

 

 

110

 

 

 

 

110

 

 

106

 

 

 

 

106

 

Impairment (1)

 

 

5

 

 

(5

)

 

 

 

10

 

 

(10

)

 

 

Other (income) (2)

 

 

(4

)

 

 

 

(4

)

 

(4

)

 

2

 

 

(2

)

Interest expense, net

 

 

6

 

 

 

 

6

 

 

9

 

 

 

 

9

 

 

 









 









 

 

 

 

5,188

 

 

(5

)

 

5,183

 

 

4,792

 

 

(8

)

 

4,784

 

 

 









 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

435

 

 

5

 

 

440

 

 

257

 

 

8

 

 

265

 

Income tax expense (3)

 

 

157

 

 

2

 

 

159

 

 

88

 

 

4

 

 

92

 

 

 









 









 

Net income

 

$

278

 

$

3

 

$

281

 

$

169

 

$

4

 

$

173

 

 

 









 









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.80

 

$

0.02

 

$

1.82

 

$

1.07

 

$

0.03

 

$

1.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

 

 

154.4

 

 

 

 

154.4

 

 

156.7

 

 

 

 

156.7

 


 

 

 

Footnotes to explain adjustments

 

 

 

 

(1)

2011 and 2010 amount reflects the write-down of CCS intangible assets.

 

 

 

 

(2)

2010 amount reflects the partial recovery of a short-term investment that was written down in 2008.

 

 

 

 

(3)

2011 and 2010 amounts reflect the income tax effect of the pre-tax adjustments highlighted in footnotes above.

-- MORE --


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

 

 

 

 

 

 

 

 

 

 

January 28,
2012

 

January 29,
2011

 

 

 


 


 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

851

 

$

696

 

Merchandise inventories

 

 

1,069

 

 

1,059

 

Other current assets

 

 

159

 

 

179

 

 

 



 



 

 

 

 

2,079

 

 

1,934

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

427

 

 

386

 

Deferred tax assets

 

 

284

 

 

296

 

Other assets

 

 

260

 

 

280

 

 

 



 



 

 

 

$

3,050

 

$

2,896

 

 

 



 



 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Accounts payable

 

$

240

 

$

223

 

Accrued and other liabilities

 

 

308

 

 

266

 

 

 



 



 

 

 

 

548

 

 

489

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

135

 

 

137

 

Other liabilities

 

 

257

 

 

245

 

SHAREHOLDERS’ EQUITY

 

 

2,110

 

 

2,025

 

 

 



 



 

 

 

$

3,050

 

$

2,896

 

 

 



 



 

-- MORE --


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

 

 

 

 

 

 

 

 

 

 

 

 

 

January 28,
2012

 

January 29,
2011

 

January 30,
2010

 

 

 


 


 


 

Foot Locker U.S.

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

1,118

 

 

1,144

 

 

1,171

 

Gross square footage

 

 

4,499

 

 

4,600

 

 

4,744

 

Selling square footage

 

 

2,656

 

 

2,726

 

 

2,812

 

 

 

 

 

 

 

 

 

 

 

 

Footaction

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

292

 

 

307

 

 

319

 

Gross square footage

 

 

1,351

 

 

1,413

 

 

1,471

 

Selling square footage

 

 

846

 

 

888

 

 

926

 

 

 

 

 

 

 

 

 

 

 

 

Lady Foot Locker

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

331

 

 

378

 

 

415

 

Gross square footage

 

 

737

 

 

838

 

 

915

 

Selling square footage

 

 

426

 

 

482

 

 

524

 

 

 

 

 

 

 

 

 

 

 

 

Kids Foot Locker

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

289

 

 

294

 

 

301

 

Gross square footage

 

 

692

 

 

706

 

 

718

 

Selling square footage

 

 

403

 

 

411

 

 

422

 

 

 

 

 

 

 

 

 

 

 

 

Champs Sports

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

534

 

 

540

 

 

552

 

Gross square footage

 

 

2,845

 

 

2,880

 

 

2,946

 

Selling square footage

 

 

1,868

 

 

1,910

 

 

1,953

 

 

 

 

 

 

 

 

 

 

 

 

CCS

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

22

 

 

12

 

 

2

 

Gross square footage

 

 

51

 

 

31

 

 

6

 

Selling square footage

 

 

34

 

 

20

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

Foot Locker International

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

783

 

 

751

 

 

740

 

Gross square footage

 

 

2,276

 

 

2,167

 

 

2,155

 

Selling square footage

 

 

1,148

 

 

1,101

 

 

1,094

 

 

 

 

 

 

 

 

 

 

 

 

Total Stores Operated

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

3,369

 

 

3,426

 

 

3,500

 

Gross square footage

 

 

12,451

 

 

12,635

 

 

12,955

 

Selling square footage

 

 

7,381

 

 

7,538

 

 

7,735

 

 

 

 

 

 

 

 

 

 

 

 

Total Franchised Stores

 

 

 

 

 

 

 

 

 

 

Number of stores

 

 

34

 

 

26

 

 

22

 

Gross square footage

 

 

84

 

 

84

 

 

78

 

Selling square footage

 

 

57

 

 

55

 

 

53

 

-XXX-