NEW YORK, April 20, 2017 /PRNewswire/ -- Foot Locker,
Inc. (NYSE: FL), the New
York-based specialty athletic retailer, today updated its
first quarter and full year 2017 outlook in light of the previously
noted slow start to the fiscal year in February. The Company
currently expects earnings in the first quarter ending April 29 to be equal to or slightly below last
year's record earnings, or $1.36 to
$1.39 per share. Comparable store sales in the first
quarter are expected to increase at a low-single digit percentage
rate. For the remaining three quarters of the year, the
Company continues to believe it will achieve a double-digit
earnings per share percentage increase and a mid-single digit
comparable store sales percentage increase; however, the sluggish
first quarter is expected to result in a revised full-year earnings
per share percentage increase in the mid-single digits, excluding
the 53rd week.
"We mentioned on our 2016 earnings conference call on
February 24th that the
first quarter of 2017 would be challenging, based on the slower
than usual start in the United
States," said Richard
Johnson, Chairman and Chief Executive Officer. "We
believe the delay in the issuance of the vast majority of income
tax refund checks until after the NBA All-Star Game signifcantly
affected our February comparable store sales, which were down
low-double digits. March sales rebounded well, up high-single
digits; however, the strength we experienced once income tax refund
checks started flowing into our customers' hands did not fully
offset the slow start to the quarter. Encouragingly, we are now
having a strong Easter selling period, with April comparable sales
likely up low double digits, which we see as confirmation that the
customer's appetite for our exciting product assortments has not
changed."
"Our full-year guidance called for a mid single digit percentage
comparable store sales increase and a double- digit percentage
earnings per share increase," added Lauren
Peters, Executive Vice President and Chief Financial
Officer. "That guidance included little operating leverage
this year for several reasons outlined during our earnings
call. With comparable sales that fall short of a mid-single
digit percentage increase, we currently expect some operating
deleverage in the first quarter."
"Despite our disappointment in the overall sales performance in
the first quarter, we are confident our banners remain at the
center of sneaker culture and we believe in our ability to produce
the strong performance over the remainder of 2017 that we
previously outlined," added Mr. Johnson.
Foot Locker, Inc. is a specialty athletic retailer that, as of
January 28, 2017, operated 3,363
stores in 23 countries in North
America, Europe,
Australia, and New Zealand. Through its Foot Locker,
Footaction, Lady Foot Locker, Kids
Foot Locker, Champs Sports, SIX:02, Runners Point, and Sidestep
retail stores, as well as its direct-to-customer channels,
including footlocker.com, Eastbay.com, and six02.com, the Company
is a leading provider of athletic footwear and apparel.
Disclosure Regarding Forward-Looking
Statements
This release contains forward-looking statements within the
meaning of the federal securities laws. Other than statements of
historical facts, all statements which address activities, events,
or developments that the Company anticipates will or may occur in
the future, including, but not limited to, such things as future
capital expenditures, expansion, strategic plans, financial
objectives, dividend payments, stock repurchases, growth of the
Company's business and operations, including future cash flows,
revenues, and earnings, and other such matters, are forward-looking
statements. These forward-looking statements are based on many
assumptions and factors which are detailed in the Company's filings
with the Securities and Exchange Commission. For a full discussion
of these risks and uncertainties that may affect forward-looking
statements, see "Risk Factors" disclosed in the 2016 Form 10-K. Any
changes in such assumptions or factors could produce significantly
different results. The Company undertakes no obligation to update
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Contact:
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John A.
Maurer
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Vice
President,
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Treasurer and
Investor Relations
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Foot Locker,
Inc.
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(212)
720-4092
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SOURCE Foot Locker, Inc.