Foot Locker, Inc. Reports First Quarter Financial Results

NEW YORK, May 19, 2011 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its first quarter ended April 30, 2011.

Financial Results

Net income for the Company's first quarter ended April 30, 2011 was $94 million, or $0.60 per share, compared with net income last year of $54 million, or $0.34 per share, an increase of 76 percent.  First quarter sales increased 13.3 percent to $1,452 million, as compared with sales of $1,281 million for the corresponding prior-year period.  First quarter comparable-store sales increased 12.8 percent.  Excluding the effect of foreign currency fluctuations, total sales for the first quarter increased 12.0 percent.  

"Our team of associates worldwide delivered an outstanding first quarter on top of what was a good first quarter last year," stated Ken C. Hicks, Chairman of the Board and Chief Executive Officer of Foot Locker, Inc.  "We continue to focus on the key initiatives of our strategic plan, which resulted in a strong sales gain, a gross margin improvement of 200 basis points, and, by managing our expenses effectively, a 38 percent flow-through of incremental sales to increased pre-tax profit compared to the first quarter of last year.  We believe this strong focus on our strategic initiatives also positioned us well to take advantage of the ongoing strong athletic cycle and really drive both our top- and bottom-line results."

Financial Position

Merchandise inventory at the end of the first quarter was $1,159 million, which was $13 million, or 1.1 percent, higher than at the end of the same period last year.

During the first quarter of 2011, the Company repurchased 1,510,000 shares of its common stock for $30 million under the Company's $250 million share repurchase program.  At the end of the first quarter, the Company's cash and short-term investments totaled $799 million. The Company's total cash position, net of debt, was $663 million, a $184 million improvement from the same time last year.  

Store Base Update

During the first quarter, the Company opened 18 new stores, remodeled or relocated 48 stores and closed 24 stores.  At April 30, 2011, the Company operated 3,420 stores in 22 countries in North America, Europe, Australia, and New Zealand.  In addition, 27 Foot Locker franchised stores were operating in the Middle East and South Korea.

The Company is hosting a live conference call at 9:00 a.m. (EDT) on Friday, May 20, 2011 to discuss these results and the Company's near-term outlook.  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, May 27, 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.

SOURCE Foot Locker, Inc.