Business news :Foot Locker, Inc. Announces 2013 Capital Allocation Plans

Foot Locker, Inc. announced three capital allocation initiatives to simultaneously invest in its business and reward shareholders.  First, its board declared a quarterly cash dividend on the company’s common stock of 20 cents per share, which will be payable on May 3, 2013 to shareholders of record on April 19, 2013.  This dividend represents an 11 percent increase over the Company’s previous quarterly per share amount and is equivalent to an annualized rate of 80 cents per share.

Second, the Board of Directors approved a new 3-year, $600 million common share repurchase program extending through January 2016, replacing the Company’s previous $400 million program.  The Company spent $129 million under that program in 2012.

Third, the Board of Directors approved a $220 million capital expenditure program for 2013, a significant increase over the approximately $163 million spent in 2012.  The Company plans to invest in its many growth opportunities, including new and innovative store formats; continued expansion in Europe; more sophisticated systems for its buyers and planners; technology to improve its customers’ experience; and robust capabilities for its digital segment, among other initiatives.

“By taking these actions, our Board has expressed its confidence that Foot Locker, Inc. has the financial strength to simultaneously invest in the Company’s growth opportunities and return cash directly to shareholders through a balanced approach to dividends and share repurchases,” said Ken C. Hicks, Chairman and Chief Executive Officer.

( SportsOneSource Media )

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