18 Feb Foot Locker to Ramp Up Capital Spending in 2016
Foot Locker Inc. announced that its board of directors had authorized two capital allocation initiatives that together elevate investment in its business operations and provide additional returns to shareholders.
First, the board of directors approved a $297 million capital expenditure program for 2016, a significant increase over the approximately $225 million the company spent in 2015. The company will continue to invest in a variety of strategic growth initiatives, including the ongoing rollout of remodel programs across its banners, additional shop-in-shop spaces in partnership with key vendors, the continuing expansion of its Kids and European businesses, and key technology improvements in its logistics and digital operations. The relocation of its headquarters within New York City will also be completed in early 2016.
Second, the board of directors declared a quarterly cash dividend on the company’s common stock of $0.275 per share, which will be payable on April 29, 2016 to shareholders of record on April 15, 2016. This dividend declaration represents a 10 percent increase over the company’s previous quarterly per-share amount and is equivalent to an annualized rate of $1.10 per share.
“I am pleased that our board of directors has once again expressed its confidence in our company’s ability to increase both our capital expenditure and dividend programs to new highs, while we also actively return cash to shareholders through repurchasing shares,” stated Richard Johnson, President and Chief Executive Officer. “The investments we have made in the business continue to be highly productive and strongly position us as leaders in the athletic retail industry. In 2016, we will continue to invest in our strategic growth pillars while also seeking to lead in generating total shareholder returns.”
Foot Locker, Inc. is a specialty athletic retailer that, as of January 30, 2016, operated 3,383 stores in 23 countries in North America, Europe, Australia, and New Zealand. Through its Foot Locker, Champs Sports, Kids Foot Locker, Footaction, Lady Foot Locker, SIX:02, Runners Point, and Sidestep retail stores, as well as its direct-to-customer channels, including Eastbay.com, footlocker.com, and SIX02.com, the company is a leading provider of athletic footwear and apparel.