Foot Locker, Inc. Reports Second Quarter Results

NEW YORK, Aug. 18, 2011 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its second quarter ended July 30, 2011.

Second Quarter Results

Net income for the Company's second quarter ended July 30, 2011 was $37 million, or $0.24 per share, compared with net income of $6 million, or $0.04 per share, last year.  Second quarter sales increased 16.3 percent, to $1,275 million this year, compared with sales of $1,096 million for the corresponding prior-year period.  Second quarter comparable-store sales increased 11.8 percent.  Excluding the effect of foreign currency fluctuations, total sales for the second quarter increased 11.7 percent.

"Our associates worldwide are doing an excellent job executing the initiatives of our strategic plan," said Ken C. Hicks, Chairman and Chief Executive Officer of Foot Locker, Inc.  "As a result, we were able to deliver strong sales and profit results in the second quarter, including a comparable store sales gain of 11.8 percent and earnings of 24 cents per share.  In addition to the outstanding second quarter results, I am also pleased to be reporting our sixth consecutive quarter of sales and profit growth, versus the comparable prior-year periods.  The results over this longer time period encourage us to believe that we have the right strategies in place to create shareholder value on a sustained basis."  

Year-to-Date Results

Net income for the Company's first six months of the year increased 121 percent to $131 million, or $0.84 per share, compared with net income of $60 million, or $0.38 per share, for the corresponding period last year.  Year-to-date sales increased 14.7 percent, to $2,727 million, compared with sales of $2,377 million last year. Year-to-date comparable-store sales increased 12.3 percent. Excluding the effect of foreign currency fluctuations, total sales year-to-date increased 11.9 percent.

Financial Position

The Company's merchandise inventory at the end of the second quarter was $1,269 million, or 4.1 percent, higher than at the end of the second quarter last year.

During the second quarter of 2011, the Company repurchased approximately 1.3 million shares of its common stock for $29 million under the Company's $250 million share repurchase program.  Year-to-date, the Company has repurchased approximately 2.8 million shares of its common stock for $59 million.

At July 30, 2011, the Company's cash and short-term investments totaled $681 million, while the debt on its balance sheet was $136 million.  The Company's total cash position, net of debt, was $163 million higher than the same time last year.

Store Base Update

During the first six months of the year, the Company opened 35 new stores, remodeled/relocated 95 stores and closed 54 stores.  At July 30, 2011, the Company operated 3,407 stores in 22 countries in North America, Europe, Australia, and New Zealand.  In addition, 25 franchised stores were operating in the Middle East and South Korea.  

The Company is hosting a live conference call at 9:00 a.m. (ET) on Friday, August 19, 2011 to discuss these results and provide comments on the current business environment and trends.  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, August 26, 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.