Foot Locker, Inc. announced that its Board of Directors authorized two capital allocation initiatives, which provide for elevated investment in the organic growth of its business and an increase in its dividend.
First, the Board of Directors approved a $275 million capital expenditures program for 2021, compared to the approximately $155 million spent in 2020.
The coming year’s plan signals a return to pre-COVID-19 levels of investment necessary to achieve its long-term strategic imperatives. A meaningful portion of funds will be invested into its digital capabilities and infrastructure, enhancing the digital customer experience and initiatives to streamline its global supply chain further. The capital plan will also include investments to accelerate the company’s community-based off-mall store rollout in markets worldwide and elevate the customer experience in its core stores.
Second, its Board of Directors declared a quarterly cash dividend on the company’s common stock of $0.20 per share, a 33 percent increase from the prior $0.15 per share, payable on April 30, 2021 to shareholders of record on April 16, 2021. The Board will continue to evaluate the dividend program quarterly.
“These actions demonstrate our Board of Directors’ confidence in resuming higher levels of investment into the business as we continue to build our strategic omnichannel position at the center of youth culture, while also returning more cash to shareholders through a significant dividend increase,” said Richard Johnson, chairman and CEO, Foot Locker, Inc.’s “The strength of our financial position enables us to pursue these initiatives, while at the same time remaining engaged in our opportunistic share repurchase program and focused on canvassing the global marketplace for new growth prospects. Of course, given the lingering unknowns of the ongoing pandemic, we will retain flexibility and discipline with respect to our capital deployment.”
Photo courtesy Foot Locker