Foot Locker shares capital allocation plans for 2016

By

Obi Anyanwu

Published
Feb 22, 2016

Foot Locker, Inc. announced Wednesday its capital allocation plans for 2016. The company’s Board of Directors authorized two capital allocation initiatives that will elevate its business operations and provide additional returns to shareholders.

 
The Board approved a $297 million capital expenditure plan, a significant increase over last year’s spending plan of $225 million. The expenditure plan will account for a variety of growth initiatives within the company as well as the rollout of its remodel programs, shop-in-shop spaces, the expansion of its Kids and European businesses, technology improvements in its logistics and digital operations and the relocation of its headquarters in New York City which will be completed in early 2016.
 
Richard Johnson, President and Chief Executive Officer, said "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."

The Board also declared 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. The dividend is a 10% increase over the company’s previous quarterly per-share amount.