Foot Locker aims to build on momentum in 2014
Foot Locker enjoyed record results for the fourth quarter and full year ended Feb. 1, and expects to build on that momentum in 2014.
For the quarter, the company reported net income of $121 million, or $0.81 per share, for the 13 weeks ended Feb. 1. This represents an increase of 19% over earnings per share of $0.68 for the 14-week period ended Feb. 2, 2013.
Total sales for the quarter increased 4.6%, to $1.8 billion this year, compared with sales of $1.7 billion in 2012, which included $81 million of sales in the extra week last year. Comparable-store sales increased 5.3%.
For fiscal year 2013, the company reported net income of $429 million, or $2.85 per share. In the 53-week period in 2012, the company reported net income of $397 million, or $2.58 per share. In 2013 the company generated its fourth consecutive double digit percentage increase in annual earnings per share. It is also the third consecutive year in which the company achieved record earnings.
Total sales in the year increased 5.2% in 2013 to $6.5 billion, the highest level of sales ever recorded by the company, compared with sales of $6.2 billion last year. Comparable-store sales increased 4.2% in 2013.
"The driver in achieving our best-ever financial results was the excellent execution by our team of the many initiatives we have underway," said chairman and CEO Ken C. Hicks. "I am very proud of the progress that the entire team at Foot Locker is making toward reaching our long-term goals and objectives. While we accomplished a great deal in 2013, we have many more opportunities to improve the business further. We believe these opportunities, such as the children's business, our store banner.com development, the expansion of shop-in-shops in partnership with our vendors, and the improvements we are making in our assortments, should continue to drive our performance to new heights for the next few years. Specifically for 2014, we believe we can build on our momentum and generate a mid-single digit comparable sales gain and another double digit percentage increase in earnings per share.”
Looking ahead in the long term, the company has plans to remodel stores, expand its presence in Europe, investing in technology and growing its sales team, services business and women's business.
The company opened 84 new stores, remodeled or relocated 320 stores and closed 140 stores during fiscal 2013. Including 193 Runners Point Group stores, the company operated 3,473 stores in 23 countries in North America, Europe, Australia and New Zealand as of Feb. 1. In addition, 46 franchised stores were operating in the Middle East and South Korea, as well as 27 franchised Runners Point and Sidestep stores in Germany and Switzerland.