New York-based retailer, Foot Locker, Inc., has unveiled its capital allocation program for 2021, which includes a planned investment of $275 million throughout the year. This represents a significant increase compared to the approximately $155 million invested in 2020. The company’s main focus for this year revolves around digital development, with the aim of improving its digital capabilities, infrastructure, and overall customer experience. Additionally, Foot Locker is prioritizing the enhancement of its global supply chain.

Amidst its digital investments, the retailer intends to expedite the rollout of community-based off-mall stores in various markets worldwide. These stores aim to establish a closer relationship with customers and deliver a unique shopping experience. Furthermore, Foot Locker is dedicated to elevating the customer experience in its core stores.

To support its investment plans, Foot Locker’s board of directors has given the green light to a quarterly cash dividend of $0.20 per share on the company’s common stock. This represents a 33% increase from the previous dividend of $0.15 per share. The board’s decision reflects their confidence in the company’s strategic position and growth prospects.

However, the company acknowledges the uncertainties caused by the ongoing pandemic and remains cautious in its capital deployment. Foot Locker is committed to maintaining flexibility and discipline to adapt to any unforeseen challenges that may arise.

In the nine months leading up to October 31, 2020, Foot Locker reported a net income of $200 million, or $1.91 per share, on sales of $5.36 billion. While sales experienced a 7.3% decline compared to the previous year, the company witnessed signs of recovery in the third quarter. Net income increased from $125 million to $265 million, and quarterly sales rose by 9.0%.

Foot Locker currently operates approximately 3,000 stores in 28 countries. The company is scheduled to announce its fourth-quarter and full-year financial results on February 26, 2021.

For more information on Foot Locker’s capital allocation program and digital development plans, please visit:
Foot Locker, Inc.
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