Foot Locker, Inc. reported a 1.8% increase in sales for the fourth quarter to $1.56 billion, versus $1.54 billion in the comparable period last year. Comparable store sales increased 3.9% for the quarter.
For the 52-week period ended January 28, 2006, sales increased 5.5% to $5.65 billion, from $5.36 billion in the company's corresponding period last year. Comparable-store sales for the company's same 52-week period increased 2.7%.
Excluding the effect of foreign currency fluctuations, total sales for the 13-week and 52-week periods increased 3.6% and 5.5%, respectively.
“We are pleased with our consolidated fourth quarter comparable-store sales results, which were in line with our initial expectations,” stated Matthew D. Serra, Foot Locker, Inc.'s Chairman and Chief Executive Officer. “Very solid comparable-store sales increases were posted by each of our retail store divisions in North America, as well as our direct-to-customers business, partially reflecting a more promotional posture during the January clearance period than we had initially expected. As a result, our merchandise is better positioned for 2006 and within our inventory aging standard. Comparable-store sales in other international markets, primarily in Europe, continued to be challenging.”
The company's fourth quarter results include pre-tax income of $5 million, or 2 cents per share, primarily reflecting collections from its insurance companies related to recovery of losses sustained during the company's third fiscal quarter that resulted from Hurricanes Katrina, Rita and Wilma. Also in the fourth quarter, the company expects its net income to be enhanced by approximately $6 to $9 million, or 4 to 6 cents per share, resulting from a reduction of its income tax valuation allowance due to actions taken to utilize international tax loss carryforwards. The company currently expects its fourth quarter net income per share from continuing operations to be in the range of 60 to 63 cents.
