Foot Locker Raises Dividend; Boosts Capital Spending
Athletic shoe and apparel retailer Foot Locker, Inc. (NYSE: FL – $66.43) plans to raise its quarterly dividend by 10% and spend $72 million more this year in capital projects, including further expanding its Kids and European operations. The company, which has been remodeling stores, set its capital spending plan at $297 million, compared with $225 million in 2015. It said the relocation of its New York City headquarters is also expected to be completed in 2016. The first payout of the new 27.5 cents a share will be paid on April 29 to shareholders of record as of April 15. The annualized dividend rate will be $1.08 per share and yield 1.6%, at current quotations. The company is scheduled to report fourth quarter results next week with estimates of $1.12 per share vs. $1.00 in the same period 2014. Based on the operational advances that FL has generated of late, and management’s positive outlook on near and long-term performance, sales should continue to mount over the next few years and holdings can be maintained.