Foot Locker announced this week that its board of directors has approved two new capital allocation programs to boost investment in business growth and to provide additional returns to shareholders.
The board approved a $297 million capital expenditure program for 2016, an increase over the approximately $225 million the company spent in 2015. The money will largely be spent on re-models of existing stores, building new shop-in shop spaces with key partners, expanding business in Europe, and growing its Kids business. In addition, Foot Locker also pans to invest in technology improvements to its logistics and digital operations.
Foot Locker also announced a quarterly cash dividend on the company’s common stock of $0.275 per share, which will be payable on April 29, 2016 to shareholders of record on April 15, 2016. This dividend declaration represents a 10 percent increase over the company’s previous quarterly per-share amount and is equivalent to an annualized rate of $1.10 per share.
“I am pleased that our Board of Directors has once again expressed its confidence in our Company’s ability to increase both our capital expenditure and dividend programs to new highs, while we also actively return cash to shareholders through repurchasing shares,” said Richard Johnson, Foot Locker President and CEO. “The investments we have made in the business continue to be highly productive and strongly position us as leaders in the athletic retail industry. In 2016, we will continue to invest in our strategic growth pillars while also seeking to lead in generating total shareholder returns.”
Foot Locker’s fourth quarter earnings will be reported next week. Last year the company exceeded expectations in its Q3 report when it announced comparable-store sales were up 8.7%.