FL
$48.57
Footlocker
$1.44
3.06%
Earnings Details
1st Quarter April 2017
Friday, May 19, 2017 6:45:00 AM
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Summary

Footlocker Misses

Footlocker (FL) reported 1st Quarter April 2017 earnings of $1.36 per share on revenue of $2.0 billion. The consensus earnings estimate was $1.38 per share on revenue of $2.0 billion. The Earnings Whisper number was $1.39 per share. Revenue grew 0.7% on a year-over-year basis.

Foot Locker Inc is a retailer of athletically inspired shoes and apparel, operating primarily mall-based stores in the United States, Canada, Europe, Australia, and New Zealand.

Results
Reported Earnings
$1.36
Earnings Whisper
$1.39
Consensus Estimate
$1.38
Reported Revenue
$2.00 Bil
Revenue Estimate
$2.02 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Foot Locker, Inc. Reports 2017 First Quarter Results

Foot Locker, Inc. (FL), the New York-based specialty athletic retailer, reported today financial results for its first quarter ended April 29, 2017.

First Quarter Results Net income for the Company’s first quarter ended April 29, 2017 was $180 million, or $1.36 per share, compared with net income of $191 million, or $1.39 per share in the same period of 2016.

First quarter comparable-store sales increased 0.5 percent. Total sales increased 0.7 percent, to $2,001 million this year, compared with sales of $1,987 million for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the first quarter increased 1.8 percent. The Company’s gross margin rate decreased to 34.0 percent of sales from 35.0 percent a year ago, and the selling, general, and administrative expense rate increased 30 basis points to 18.5 percent of sales.

"The first quarter was one of our most profitable quarters ever, but it did fall short of our original expectations," said Richard Johnson, Chairman of the Board and Chief Executive Officer. "The slow start we experienced in February, which we believe was largely due to the delay in income tax refunds, was unfortunately not fully offset by much stronger sales in March and April. Nonetheless, we believe our banners remain at the center of a vibrant sneaker culture. We are confident that our customers have not lost their tremendous appetite for athletic footwear and apparel and that our position in the industry is stronger than ever."

Financial Position At April 29, 2017, the Company’s merchandise inventories were $1,279 million, 1.5 percent higher than at the end of the first quarter last year. Using constant currencies, inventory increased 2.8 percent. The Company’s cash totaled $1,049 million, while the debt on its balance sheet was $127 million. The Company spent $38 million to repurchase 546 thousand shares during the quarter and paid a quarterly dividend of $0.31 per share.

"Our overall financial position remains very strong," said Lauren Peters, Executive Vice President and Chief Financial Officer. "In addition, the tight inventory discipline we have maintained over the last several years is serving us well now, because even with first quarter sales that ran below expectations, we believe our inventory is still well positioned to drive improved top line results over the balance of the year. At the same time, we are aggressively reviewing and implementing opportunities to lower expenses as we work to achieve a mid-single digit EPS increase for the full year."

Store Base Update During the first quarter, the Company opened 30 new stores, remodeled or relocated 61 stores, and closed 39 stores. As of April 29, 2017, the Company operated 3,354 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 62 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 15 franchised Runners Point stores in Germany.

The Company is hosting a live conference call at 9:00 a.m. (EDT) today, May 19, 2017, to review these results and discuss the outlook for the remainder of 2017, and comment on the status of its current initiatives. This conference call may be accessed live by dialing 1-800-749-1342 (U.S. and Canada) or +44 203-300-0091 (International), or via the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. Please log on to the website 15 minutes prior to the call in order to register. A replay of the call will be available via webcast from the same Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com through June 2, 2017.

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), cybersecurity breaches, pandemics and similar major health concerns, unseasonable weather, deterioration of global financial markets, economic conditions worldwide, 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 global product sourcing, including political instability, changes in import regulations, and disruptions to transportation services and distribution.

For additional discussion on risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the 2016 Annual Report on Form 10-K. 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.

FOOT LOCKER, INC.
Condensed Consolidated Statements of Operations
(unaudited)
Periods ended April 29, 2017 and April 30, 2016
(In millions, except per share amounts)
First
First
Quarter
Quarter
2017
2016
Sales
$
2,001
$
1,987
Cost of sales
1,321
1,291
SG&A
371
361
Depreciation and amortization
41
39
Interest expense, net
-
-
Other income
(1)
(2)
1,732
1,689
Income before taxes
$
269
$
298
Income tax expense
89
107
Net income
$
180
$
191
Diluted EPS
$
1.36
$
1.39
Weighted-average diluted shares
132.6
137.8
outstanding
FOOT LOCKER, INC.
Condensed Consolidated Balance Sheets
(unaudited)
(In millions)
April 29,
April 30,
2017
2016
Assets
CURRENT ASSETS
Cash and cash equivalents
$
1,049
$
1,062
Merchandise inventories
1,279
1,260
Other current assets
294
270
2,622
2,592
Property and equipment, net
792
706
Deferred tax assets
162
182
Other assets
301
278
$
3,877
$
3,758
Liabilities and Shareholders’ Equity
CURRENT LIABILITIES
Accounts payable
$
208
$
230
Accrued and other liabilities
327
347
Current portion of capital lease obligations
-
1
535
578
Long-term debt and obligations under capital leases 127
128
Other liabilities
393
377
SHAREHOLDERS’ EQUITY
2,822
2,675
$
3,877
$
3,758
FOOT LOCKER, INC.
Store and Square Footage
(unaudited)
Store activity is as follows:
January 28, Opened Closed April 29, Relocations/
2017
2017
Remodels
Foot Locker US
948
2
12
938
17
Foot Locker Europe
622
4
5
621
14
Foot Locker Canada
119
-
2
117
-
Foot Locker Asia Pacific 95
2
1
96
6
Kids Foot Locker
411
12
1
422
10
Lady Foot Locker
124
-
7
117
-
Champs Sports
545
2
2
545
6
Footaction
261
6
6
261
8
Runners Point
122
-
1
121
-
Sidestep
86
-
2
84
-
SIX:02
30
2
-
32
-
Total
3,363
30
39
3,354
61
Selling and gross square footage are as follows:
January 28, 2017
April 29, 2017
(in thousands)
Selling
Gross
Selling
Gross
Foot Locker US
2,453
4,250
2,449
4,253
Foot Locker Europe
907
1,971
911
1,969
Foot Locker Canada
265
432
262
424
Foot Locker Asia Pacific 134
220
137
228
Kids Foot Locker
688
1,175
716
1,220
Lady Foot Locker
167
280
159
267
Champs Sports
1,930
2,978
1,933
2,990
Footaction
786
1,309
804
1,343
Runners Point
162
267
154
265
Sidestep
81
135
77
133
SIX:02
61
101
65
109
Total
7,634
13,118
7,667
13,201
Contact: John A. Maurer
Vice President,
Treasurer and Investor Relations
Foot Locker, Inc.
(212) 720-4092

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/foot-locker-inc-reports-2017-first-quarter-results-300460474.html

SOURCE Foot Locker, Inc.

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