Foot Locker, Inc. the New York-based specialty athletic retailer, today reported financial results for its first quarter ended April 28, 2012.
Net income for the Company's first quarter ended April 28, 2012 was $128 million, or $0.83 per share, compared with net income last year of $94 million, or $0.60 per share, an increase of 38 percent. First quarter sales increased 8.7 percent to $1,578 million, as compared with sales of $1,452 million for the corresponding prior-year period. First quarter comparable-store sales increased 9.7 percent. Excluding the effect of foreign currency fluctuations, total sales for the first quarter increased 9.8 percent.
"2012 has gotten off to an outstanding start, with our first quarter results representing the highest level of quarterly earnings in the Company's history as an athletic business," said Ken C. Hicks, Chairman of the Board and Chief Executive Officer of Foot Locker, Inc. "The first quarter continued our recent track record of meaningful sales and profit increases over the comparable prior-year periods. We remain focused on executing the initiatives of our updated strategic plan and objectives in order to continue to drive our strong financial performance."
Merchandise inventory at the end of the first quarter was $1,146 million, which was $13 million, or 1.1 percent, lower than at the end of the same period last year.
During the first quarter of 2012, the Company repurchased 878,700 shares of its common stock for approximately $27 million under the Company's $400 million share repurchase program which, as previously announced, its Board of Directors authorized earlier this year. At the end of the first quarter, the Company's cash and short-term investments totaled $909 million. The Company's total cash position, net of debt, was $774 million, a $111 million increase over the same time last year. "Our strong financial position will enable us to increase our investment in what we believe will be high-return growth opportunities, as we pursue the elevated financial goals of our updated long range plan," stated Lauren B. Peters, Executive Vice President and Chief Financial Officer.
Store Base Update
During the first quarter, the Company opened 25 new stores, remodeled or relocated 53 stores, and closed 34 stores. As of April 28, 2012, the Company operated 3,360 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 36 Foot Locker franchised stores were operating in the Middle East and South Korea.
The Company is hosting a live conference call at 9:00 a.m. (EDT) today, May 18, 2012 to discuss these results and provide comments on the current business environment and trends. This conference call may be accessed live by dialing 888-446-3850 (U.S. and Canada) or 630-691-2739 (International) using the passcode 32393768, or via the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. Please log on to the website 15 minutes prior to the call in order to download any necessary software. A replay of the call will be available via webcast from the same Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com through May 25, 2012.
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