Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Foot Locker    FL

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

CORRECT(3/6): Foot Locker Unveils Expansion Effort, Targets $7.5 Billion In 2016 Sales

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/07/2012 | 07:23pm CEST

("Foot Locker Unveils Expansion Effort, Targets $7.5B In 2016 Sales," at 5:05 p.m. EST Tuesday, misstated the income percentage in the first bullet point and second paragraph. It also misstated a category Foot Locker is targeting in the 11th paragraph and the time period for digital sales in the 12th paragraph. The correct version follows:)

--Foot Locker targets earnings to be 7% of sales by 2016

--Foot Locker plans to boost gross margin, sales per square foot

--New goals come after company reached most of its previous five-year goals set in 2010 ahead of schedule

 
   By Andria Cheng 
 

Foot Locker Chief Executive Ken Hicks is undergoing a major effort to expand sales of the New York company--the largest U.S. specialty-athletic-shoe chain by revenue--by more than a third to $7.5 billion in 2016, from $5.6 billion last year.

At the company's New York headquarters Tuesday, Hicks said the company plans to increase revenue without sacrificing its bottom line, including by increasing gross margin and sales per square foot. The company projects earnings as a percentage of sales will increase to 7% by 2016 from 5% last year.

Foot Locker targets an increase in its sales per square foot to $500 in 2016, from $406 last year and $333 in 2009. Same-store sales are projected to rise in the mid-single-digit after rising 9.8% last year, the highest level in at least three years.

The new goals were laid out as the company reached most of its previous five-year goals set in 2010 ahead of schedule. Analysts have praised Hicks, a former J.C. Penney Co. (>> J.C. Penney Company, Inc.) executive who joined Foot Locker in 2009, for initiatives including improved relationships with vendors such as Nike Inc. (>> NIKE, Inc.), Adidas AG (ADS.XE, ADDYY) and Under Armour Inc. (>> Under Armour Inc).

Foot Locker improved its results "through organic action and not by going to vendors to ask for money," Hicks told a group of about 100 analysts and investors at its New York headquarters Tuesday.

He also changed merchandise displays to feature complete, color-coordinated, clothing-and-shoe ensembles from head to toe, and added more running and other categories to expand beyond the namesake chain's traditional focus as a basketball sneaker shop.

To improve customer service, the company has increased training to help employees better sell basketball and running shoes and devote more time to working with customers instead of on other tasks.

Foot Locker's stock has almost tripled since Hicks joined the company on Aug. 17, 2009, compared with a 40% increase in the Standard & Poor's 500 index over the same period. Foot Locker shares closed up 0.7% at $29.62 Tuesday.

"They continue to execute," analyst Christopher Svezia of Susquehanna Financial Group said in an interview. "They are doing a lot of things better. The new goals could be achievable. I'll give them some credit."

Hicks's plans include a net new opening of 60 to 70 stores, including under the Kids Foot Locker and Champs banners, starting next year. That compares with a net opening of seven expected this year. Last year, the company closed more stores than it opened.

Foot Locker is planning to increase sales in four areas--apparel, women, kids and youth athletic teams. Each of the four segments has the opportunity to generate an additional $100 million in sales, according to Hicks.

Digital sales, which rose 20% to make up 11% of the company's total in the fourth quarter, also are in focus. At the company's 34th Street flagship store in New York, in the middle of a wall of running shoes, a sign directs shoppers to 1,200 styles of running footwear available for purchase on the company's website.

In an interview, Hicks said he prefers to invest the company's capital back into the business instead of increasing share buybacks and having to borrow money later on.

Hicks acknowledged the economy is the company's "biggest challenge," because of the high unemployment rate among teenagers.

He said Europe is still a profitable market with plenty of growth potential despite the region's sovereign-debt crisis. The company also posted rising sales in February in Greece, he said. Hicks also expects demand will improve in the region due to this year's London Olympics and European Football Championship.

Even in a difficult economy, Foot Locker has benefited, Hicks said.

"The kids aren't going out to buy a car or a $1,000 handbag. They are spending money on sneakers and not on other things. We are the place to go to differentiate themselves," he added.

-By Andria Cheng; 415-439-6400; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FOOT LOCKER
06/22 FOOT LOCKER : Kids Foot Locker Goes '1-ON-1' with Top NBA Draft Prospects
06/22 DICKS SPORTING GOODS : Dick's Sporting Goods Business plans move into area mall ..
06/21 Is Nike joining the Amazon roster?
06/15 FOOT LOCKER : The Lonzo Ball Father's Day Foot Locker Commercial Is Fantastic
06/15 FOOT LOCKER : Lonzo Ball pokes fun at dad LaVar Ball in new commercial
06/14 FOOT LOCKER : Lonzo Ball makes fun of LaVar in new Foot Locker commercial
06/14 FOOT LOCKER : Lonzo Ball pokes fun at his father in new commercial
06/14 FOOT LOCKER : Lonzo Ball And Top NBA Draft Prospects Celebrate Father's Day In N..
06/11 FOOT LOCKER : awards $20,000 to Braddock student athlete
06/09 FOOT LOCKER : Earnings Highlights and Review: Foot Locker's Earnings Results Mis..
More news
Sector news : Apparel & Accessories Retailers - NEC
06/20 CK Hutchison skirts report of Li Ka-shing retirement, tycoon in "good health"
06/16DJToday's Top Supply Chain and Logistics News From WSJ
06/15 HENNES & MAURITZ : H&M sales miss forecast after rough start to May
06/14DJINDITEX : How Zara Is Defying a Broad Retail Slump
06/14DJINDITEX : Zara Parent Inditex Beats Rivals With 18% First-Quarter Profit Rise --..
More sector news : Apparel & Accessories Retailers - NEC
News from SeekingAlpha
06/23 One Of The Most Anticipated Days In Retail
06/23 Finish Line sales warning hangs over DKS, FL and HIBB
06/21 FOOT LOCKER : The Wake Doesn't Drive The Boat
06/21 Susquehanna says sell-off in Foot Locker and Dick's overdone
06/21 Am I Missing Something?
Advertisement
Financials ($)
Sales 2018 8 115 M
EBIT 2018 1 015 M
Net income 2018 669 M
Finance 2018 961 M
Yield 2018 2,52%
P/E ratio 2018 9,35
P/E ratio 2019 8,70
EV / Sales 2018 0,66x
EV / Sales 2019 0,66x
Capitalization 6 306 M
More Financials
Chart FOOT LOCKER
Duration : Period :
Foot Locker Technical Analysis Chart | FL | US3448491049 | 4-Traders
Full-screen chart
Technical analysis trends FOOT LOCKER
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 72,1 $
Spread / Average Target 50%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Richard A. Johnson Chairman, President & Chief Executive Officer
Lauren B. Peters Chief Financial Officer & Executive Vice President
Pawan Verma Chief Information Officer & Senior Vice President
Jarobin Gilbert Independent Director
Cheryl Nido Turpin Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FOOT LOCKER-32.25%6 306
INDITEX SA7.49%121 499
FAST RETAILING CO LTD-11.88%35 122
ROSS STORES-14.19%21 907
L BRANDS INC-19.73%15 335
ZALANDO13.03%11 348
More Results