Foot Locker’s Q1 Profits Surge 74 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.