Financial Analysis of Foot Locker Inc.
Foot Locker is a leading global athletic footwear and apparel retailer with its headquarters located in New York City. Its stores offer the latest in athletic-inspired performance products, manufactured primarily by the leading athletic brands. Foot Locker offers products for a wide variety of activities including basketball, running, and training. Its 1,911 stores are located in 21 countries including 1,171 in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam, 129 in Canada, 518 in Europe, and a combined 93 in Australia and New Zealand. The domestic stores have an average of 2,400 selling square feet and the international stores have an average of 1,500 selling square feet. www.Footlocker-inc.com Foot Locker operates in two reportable segments athletic stores and direct to their customers. The athletic store is one of their biggest retailor stores in the U.S. These stores include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs, Foot action and CCS. Their direct to customers includes Foot Locker, Eastbay Inc and CCS which sell their product line through the internet. (Foot Locker Inc.com)
In Foot Locker’s financial report it gave us some highlights on their financial growth, which states in 2012 their sales increased 9.4 percent, which was in line with last year sales of 9.8 percent gain. The total sales for the company have increased more than 20 percent, which result in growth of 6.1 billion. This is the most Foot Locker ever made as an athletic company.
Another highlight of the company was the company’s gross margin, which was 32.8 in 2012, just a little more than the 31.9 in 2011 and their selling rate went down by 20.9 percent. Both of these figures show us how Foot Locker has improved and shown to be one of their best performance ever.
In addition to all foot locker growth and gain they announce in February of 2013 “an 11 percent increase in their common stock dividend payable in the first quarter of fiscal 2013. This increase to 20 percent marks the third year in a row with an increase in the 10 percent range.” “They also announced a new three-year $600 million share repurchase program (Foot Locker Inc. 2012 Annual Report).”With their repurchased program Foot Locker has repurchased 129 million in common stock during the year of 2012.
After reviewing Footlocker Inc. statement of cash flow as shown in the chart below, its net operating activities were all positive which means the company is growing comparing 2010 to 2012, and it has gone from 326 million to 497 million in 2011 and dropping in 2012. Although this has occurred, the company still remains in the positive margin, which is still considered good standard. Looking at the investing and financial activities, both show negative numbers...