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UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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WASHINGTON, D.C. 20549 |
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FORM 8-K |
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CURRENT REPORT |
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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported): August 18, 2011 |
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Foot Locker, Inc. |
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(Exact Name of Registrant as Specified in its Charter) |
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New York |
1-10299 |
13-3513936 |
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(State or other Jurisdiction |
(Commission File Number) |
(I.R.S. Employer |
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112 West 34th Street, New York, New York |
10120 |
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(Address of Principal Executive Offices) |
(Zip Code) |
Registrant’s telephone number, including area code: 212-720-3700
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Former Name/Address |
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(Former name or former address, if changed from last report) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02. |
Results of Operation and Financial Condition |
On August 18, 2011, Foot Locker, Inc. issued a press release announcing its operating results for the second quarter of 2011. A copy of the press release is furnished as Exhibit 99.1, which, in its entirety, is incorporated herein by reference.
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Item 9.01. |
Financial Statements and Exhibits |
(c) Exhibits
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99.1 |
Press Release of Foot Locker, Inc. dated August 18, 2011 reporting operating results for the second quarter of 2011. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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FOOT LOCKER, INC. |
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(Registrant) |
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Date: August 18, 2011 |
By: |
/s/ Lauren B. Peters |
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Executive Vice President and |
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EXHIBIT 99.1 |
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N E W S R E L E A S E |
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Contact: |
John A. Maurer |
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Vice President, |
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Treasurer and Investor Relations |
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Foot Locker, Inc. |
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(212) 720-4092 |
FOOT LOCKER, INC. REPORTS SECOND QUARTER RESULTS
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Net Income of $0.24 Per Share, Versus $0.04 Per Share Last Year |
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Comparable-Store Sales Increased 11.8 Percent |
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Gross Margin Increased 260 Basis Points |
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Sixth Consecutive Quarter of Sales and Profit Growth, Versus the Comparable Prior-Year Periods |
NEW YORK, NY, August 18, 2011 – Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its second quarter ended July 30, 2011.
Second Quarter Results
Net income
for the Company’s second quarter ended July 30, 2011 was $37 million, or $0.24
per share, compared with net income of $6 million, or $0.04 per share, last
year. Second quarter sales increased 16.3 percent, to $1,275 million this year,
compared with sales of $1,096 million for the corresponding prior-year period.
Second quarter comparable-store sales increased 11.8 percent. Excluding the
effect of foreign currency fluctuations, total sales for the second quarter
increased 11.7 percent.
“Our associates worldwide are doing an excellent job executing the initiatives of our strategic plan,” said Ken C. Hicks, Chairman and Chief Executive Officer of Foot Locker, Inc. “As a result, we were able to deliver strong sales and profit results in the second quarter, including a comparable store sales gain of 11.8 percent and earnings of 24 cents per share. In addition to the outstanding second quarter results, I am also pleased to be reporting our sixth consecutive quarter of sales and profit growth, versus the comparable prior-year periods. The results over this longer time period encourage us to believe that we have the right strategies in place to create shareholder value on a sustained basis.”
Year-to-Date Results
Net income for
the Company’s first six months of the year increased 121 percent to $131
million, or $0.84 per share, compared with net income of $60 million, or $0.38
per share, for the corresponding period last year. Year-to-date sales increased
14.7 percent, to $2,727 million, compared with sales of $2,377 million last
year. Year-to-date comparable-store sales increased 12.3 percent. Excluding the
effect of foreign currency fluctuations, total sales year-to-date increased
11.9 percent.
Financial Position
The Company’s merchandise inventory at the end of
the second quarter was $1,269 million, or 4.1 percent, higher than at the end
of the second quarter last year.
During the second quarter of 2011, the Company repurchased approximately 1.3 million shares of its common stock for $29 million under the Company’s $250 million share repurchase program. Year-to-date, the Company has repurchased approximately 2.8 million shares of its common stock for $59 million.
-- MORE –
Foot Locker, Inc. 112 West 34th Street, New York, NY 10120
At July 30, 2011, the Company’s cash and short-term investments totaled $681 million, while the debt on its balance sheet was $136 million. The Company’s total cash position, net of debt, was $163 million higher than the same time last year.
Store
Base Update
During the first six months of the year, the
Company opened 35 new stores, remodeled/relocated 95 stores and closed 54
stores. At July 30, 2011, the Company operated 3,407 stores in 22 countries in
North America, Europe, Australia, and New Zealand. In addition, 25 franchised
stores were operating in the Middle East and South Korea.
The Company is hosting a live conference call at 9:00 a.m. (ET) on Friday, August 19, 2011 to discuss these results and provide comments on the current business environment and trends. 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, August 26, 2011.
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, financial objectives, 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 July 30, 2011 and July 31, 2010
(In
millions, except per share amounts)
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Second |
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Second |
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Sales |
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$ |
1,275 |
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$ |
1,096 |
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Cost of sales |
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887 |
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791 |
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Selling, general and administrative expenses |
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301 |
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268 |
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Depreciation and amortization |
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28 |
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26 |
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Interest expense, net |
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1 |
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2 |
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Other income |
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--- |
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(1 |
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1,217 |
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1,086 |
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Income before income taxes |
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58 |
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10 |
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Income tax expense |
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21 |
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4 |
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Net Income |
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$ |
37 |
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$ |
6 |
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Diluted EPS: |
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Net Income |
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$ |
0.24 |
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$ |
0.04 |
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Weighted-average diluted shares outstanding |
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155.2 |
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156.9 |
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Year-To-Date |
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Year-To-Date |
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Sales |
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$ |
2,727 |
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$ |
2,377 |
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Cost of sales |
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1,864 |
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1,679 |
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Selling, general and administrative expenses |
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599 |
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548 |
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Depreciation and amortization |
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55 |
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52 |
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Interest expense, net |
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3 |
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5 |
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Other income |
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(1 |
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(1 |
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2,520 |
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2,283 |
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Income before income taxes |
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207 |
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94 |
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Income tax expense |
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76 |
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34 |
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Net Income |
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$ |
131 |
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$ |
60 |
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Diluted EPS: |
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Net Income |
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$ |
0.84 |
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$ |
0.38 |
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Weighted-average diluted shares outstanding |
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155.4 |
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157.1 |
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- MORE -
FOOT LOCKER, INC.
Condensed Consolidated Balance Sheets
(unaudited)
(In
millions)
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July 30, |
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July 31, |
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Assets |
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CURRENT ASSETS |
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Cash, cash equivalents and short-term investments |
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$ |
681 |
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$ |
519 |
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Merchandise inventories |
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1,269 |
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1,219 |
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Other current assets |
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189 |
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161 |
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2,139 |
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1,899 |
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Property and equipment, net |
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408 |
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376 |
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Deferred tax assets |
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298 |
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351 |
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Other assets |
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274 |
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287 |
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$ |
3,119 |
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$ |
2,913 |
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Liabilities and Shareholders’ Equity |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
365 |
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$ |
345 |
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Accrued and other liabilities |
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255 |
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236 |
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620 |
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581 |
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Long-term debt and obligations under capital leases |
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136 |
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137 |
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Other liabilities |
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248 |
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279 |
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SHAREHOLDERS’ EQUITY |
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2,115 |
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1,916 |
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$ |
3,119 |
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$ |
2,913 |
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- MORE -
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FOOT LOCKER, INC. |
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Store and Estimated Square Footage |
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(unaudited) |
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(Square footage in thousands) |
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July 30, |
July 31, |
August 1, |
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Foot Locker U.S. |
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Number of stores |
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1,136 |
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1,155 |
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1,211 |
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Gross square footage |
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4,572 |
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4,658 |
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4,898 |
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Selling square footage |
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2,702 |
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2,759 |
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2,901 |
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Footaction |
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Number of stores |
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304 |
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313 |
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327 |
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Gross square footage |
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1,400 |
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1,442 |
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1,522 |
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Selling square footage |
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878 |
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906 |
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951 |
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Lady Foot Locker |
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Number of stores |
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353 |
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400 |
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469 |
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Gross square footage |
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785 |
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883 |
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1,034 |
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Selling square footage |
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454 |
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506 |
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592 |
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Kids Foot Locker |
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Number of stores |
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291 |
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304 |
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304 |
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Gross square footage |
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697 |
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728 |
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724 |
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Selling square footage |
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406 |
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426 |
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425 |
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Champs Sports |
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Number of stores |
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536 |
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548 |
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565 |
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Gross square footage |
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2,861 |
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2,923 |
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3,018 |
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Selling square footage |
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1,899 |
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1,940 |
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2,005 |
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CCS |
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Number of stores |
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16 |
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12 |
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2 |
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Gross square footage |
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40 |
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31 |
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6 |
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Selling square footage |
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26 |
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20 |
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4 |
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Foot Locker International |
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Number of stores |
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771 |
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744 |
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737 |
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Gross square footage |
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2,236 |
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2,147 |
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2,145 |
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Selling square footage |
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1,140 |
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1,091 |
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1,093 |
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Total Stores Operated |
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Number of stores |
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3,407 |
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3,476 |
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3,615 |
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Gross square footage |
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12,591 |
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12,812 |
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13,347 |
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Selling square footage |
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7,505 |
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7,648 |
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7,971 |
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Total Franchised Stores |
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Number of stores |
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25 |
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20 |
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19 |
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Gross square footage |
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82 |
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78 |
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80 |
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Selling square footage |
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55 |
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50 |
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53 |
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-XXX-