22 Feb Foot Locker To Ramp Up Capital Spending In 2019
Foot Locker Inc. said its Board of Directors approved a $275 million capital expenditures program for 2019, compared to the approximately $200 million in 2018. The increased spending reflects increased investments in the company’s store fleet in all existing regions, including Asia, and in its digital initiatives. In addition, the company will continue to spend capital to build out its supply chain and other infrastructure capabilities.
Foot Locker also said its Board declared a quarterly cash dividend on the company’s common stock of 38 cents per share, which will be payable on May 3, 2019 to shareholders of record on April 18, 2019. The 10 percent increase in the dividend is the ninth consecutive year with a dividend increase in the double-digit percent range and is equivalent to an annualized rate of $1.52 per share.
Finally, the Board approved a new 3-year, $1.2 billion common share repurchase program extending through January 2022, replacing the company’s previous $1.2 billion program. Through the end of fiscal 2018, the company had spent $817 million under that program since it was announced two years ago.
“As we look at 2019, we see exciting opportunities to invest in our business and continue to build on our unparalleled strengths,” said Richard Johnson, chairman and chief executive officer. “Taken together, these actions demonstrate that our Board is confident that Foot Locker, Inc. can simultaneously deliver strong financial results, invest in the long-term growth of the business, and provide meaningful returns to our shareholders.”