Foot Locker posts sales and net income increases for Q4 and fiscal 2016

By

Obi Anyanwu

Published
Feb 24, 2017

Foot Locker on Friday reported its fourth quarter and full year results for the period ended on January 28, 2017.

 
Fourth quarter total sales increased 5.3% to $2,113 million and comparable sales increased 5.0%. Net income was $189 million, or $1.42 per share, compared to $158 million or $1.14 per share, in the previous fourth quarter. The gross margin rate increased slightly to 33.7% of sales versus 33.6% in the previous year, and the SG&A expense rate improved 60 basis points to 18.7% of sales.
 
Foot Locker opened 20 new stores in the fourth quarter, and also remodeled or relocated 59 stores and closed 51 stores.

Sales for the fiscal year increased 4.8% to $7,766 million from $7,412 million and comparable store sales increased 4.3%. Net income increased to $664 million, or $4.91 per share, from $541 million, or $3.84 per share in the prior year.
 
Lauren Peters, Executive Vice President and Chief Financial Officer, said, "Our Earnings Before Interest and Taxes surpassed $1 billion for the first time in our history and the EBIT rate improved to 13 percent of sales.  Our adjusted net income margin increased to 8.4 percent and our sales per gross square foot reached $515.”
 
She added that the company is planning for a mid-single digit comparable sales gain and double-digit earnings per share increase for fiscal 2017.
 
As of January 28, 2017, Foot Locker operates 3,363 stores in 23 countries.