Foot Locker, Inc. the New York-based specialty athletic retailer reported financial results for its fourth quarter and full year ended January 30, 2010.
Fourth Quarter Financial Results
The Company reported net income of $23 million, or $0.14 per share, for the fourth quarter this year, after including $16 million, after tax, or $0.10 per share, of inventory write-downs, corporate restructuring charges, and an income tax adjustment. Excluding the charges, fourth quarter net income was $39 million, or $0.24 per share, in 2009.
In the year-ago period, the Company reported a net loss of $125 million, or $0.81 per share, after including non-cash impairment charges of $164 million, after tax, or $1.06 per share. Before the impairment charges, 2008 fourth quarter net income was $39 million, or $0.25 per share.
Fourth quarter sales increased 0.6 percent, to $1,325 million this year compared with sales of $1,317 million for the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales for the thirteen-week period decreased 2.9 percent. Fourth quarter comparable-store sales decreased 2.3 percent.
The Company took several initial steps during the fourth quarter as part of a new comprehensive strategic plan that Foot Locker, Inc. will initiate in 2010.
• Consolidated its Foot Locker, Lady Foot Locker, Kids Foot Locker and Footaction operations under one management structure • Closed 106 underproductive stores • Eliminated 120 corporate and divisional field and home office positions • Changed its merchandise aging standard to be aligned with the Company's new apparel strategy
The impact of these actions on the Company's fourth quarter results is outlined in the accompanying financial statements.
"We experienced an improving sales trend in both our U.S. and international operations as we progressed through the fourth quarter, including a comparable-store sales increase for the month of January that has continued through the month of February," stated Ken C. Hicks, Chairman of the Board and Chief Executive Officer of Foot Locker, Inc. "I am pleased with our operational execution during the quarter as we managed our inventories effectively and maintained tight expense controls. This, coupled with the strategic steps that we took during the fourth quarter, position us well as we head into 2010 and focus on driving both the near- and long-term growth of our business."
Fiscal Year Financial Results
For the fiscal year, the Company reported net income of $48 million, or $0.30 per share, including an inventory write-down, corporate restructuring charges, the write-down of long-lived assets, and an income tax adjustment that total $38 million, after-tax, or $0.24 per share. Excluding the charges, year-to-date net income was $86 million, or $0.54 per share.
The Company reported a net loss last year of $80 million, or $0.52 per share, which included impairment charges and store closing expenses of $185 million, after tax, or $1.20 per share. Before the impairment and other charges, net income was $105 million, or $0.68 per share, in the 2008 fiscal year.