Foot Locker plans to invest in store fleet and supply chain in 2019
today Feb 21, 2019
Sport and footwear retailer Foot Locker, Inc. is planning to spend this year, with the company's board of directors authorizing multiple capital allocation initiatives, including a $1.2 billion common share repurchase program and a $275 million capital expenditures program.
The 3-year common share repurchase program will extend through January 2022, and replace the previous $1.2 billion program.
The $275 million capital expenditures program for 2019 marks an increase from the approximately $200 million program for 2018. According to a press statement from the company, the spending boost "reflects increased investments in Foot Locker's store fleet in all existing regions, including Asia, and in its digital initiatives." The company also plans to devote funds to building up its supply chain and other infrastructure capabilities.
“As we look at 2019, we see exciting opportunities to invest in our business and continue to build on our unparalleled strengths,” said Richard Johnson, the company's chairman and chief executive officer. “Taken together, these actions demonstrate that our board is confident that Foot Locker, Inc. can simultaneously deliver strong financial results, invest in the long-term growth of the business, and provide meaningful returns to our shareholders.”
In a third initiative, Foot Locker increased its quarterly cash dividend by 10% to $0.38 per share, which will be payable on May 3, 2019 to shareholders of record on April 18, 2019.
As Foot Locker's shares continue to rise, these new initiatives follow the announcement of the company's reorganized global operating model focused on the EMEA (Europe, Middle East and Africa), Asia Pacific and North America regions.
The company's shares were up following the announcement on Wednesday, and were valued at $60.05 at closing on Wednesday.
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