Foot Locker Inc. (New York) has announced a 21 percent increase in net earnings for its fourth quarter of 2004, ended Jan. 29, 2005.
Sales were up 15.1 percent in the quarter and same-store sales increased 2.5 percent.
“Our fourth quarter earnings per share increase of 21 percent was above the high end of our original guidance range, and reflected a solid comparable-store sales increase, an improving operating profit margin rate and a lower effective income tax rate,” said chairman and ceo Matthew Serra. “The financial highlights of the fourth quarter also included a strong total sales increase, a higher gross margin rate and continued effective expense management.”
For the full year, net income increased 35 percent, sales increased 12.1 percent and same-store sales increased 0.9 percent.
“We are pleased that during 2004 we continued to produce a meaningful and consistent earnings increase,” Serra said. “2004 was a milestone year for our company, in many respects, including the celebration of the 30th anniversary of the opening of our first Foot Locker store, the acquisition of the 349-store Footaction chain as well as the expansion into our 18th country by acquiring 11 stores in the Republic of Ireland. We concluded the year with a strong balance sheet that provides financial flexibility should appropriate investment opportunities arise.”
During 2004, Foot Locker opened 457 new stores, including 360 that were acquired, remodeled/relocated 225 stores and closed 100 stores. At January 29, the retailer operated 3967 stores in 18 countries in North America, Europe and Australia. Excluded from this total are 10 former The Athlete’s Foot stores that the company recently purchased through the Bankruptcy Court, that it expects to open in fiscal 2005.
For 2005, a comparable-store sales increase in the low-to-mid single digit range is currently expected.