Foot Locker Inc. announced that its board of directors authorized two capital allocation initiatives to both sustain meaningful investment in the business and reward long-term shareholders.
First, its board of directors declared a quarterly cash dividend on the company’s common stock of $0.345 per share, which will be payable on May 4, 2018 to shareholders of record on April 20, 2018. The 11 percent increase in the dividend is the eighth consecutive year with a dividend increase in the 10 percent range and is equivalent to an annualized rate of $1.38 per share.
Second, the Board of Directors approved a $230 million capital expenditures program for 2018, compared to the approximately $270 million spent in 2017. The capital spend planned for 2018 reflects the company’s greater focus on digital and supply chain initiatives relative to investments in real estate. The digital investments include enhancements to its mobile and web platforms, the global roll-out of its new point-of-sale software and expanding data analytics capabilities. Spending on its store fleet, while lower compared to recent years, will still comprise the majority of the Company’s capital expenditures, and will include the ongoing execution of its remodel programs across most banners, additional shop-in-shop spaces in partnership with key vendors, and the testing of off-mall retail formats.
Richard Johnson, chairman and chief executive officer, stated, “Together, these actions demonstrate our Board of Directors’ confidence in our Company’s ability to execute the initiatives that will transform our business faster and strengthen the connections with our customers that we believe will maintain our leadership position in a dynamic youth culture, while also extending our annual double-digit dividend rate increases.”
Foot Locker, Inc. is a specialty athletic retailer that, as of February 3, 2018, operated 3,310 stores in 24 countries in North America, Europe, Australia and New Zealand. Through its Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02 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.
