Foot Locker is increasing its capital expenditures for 2021 to a pre-COVID level.
The specialty athletic retailer said its board approved a $275 million capital expenditures program for 2021, compared to the approximately $155 million spent in 2020.
“The plan for the coming year signals a return to a pre-COVID level of investment necessary to achieve its long-term strategic imperatives,” the company stated. “A meaningful portion of funds will be invested into its digital capabilities and infrastructure, enhancement of the digital customer experience, as well as initiatives to further streamline global supply chain.”
“In addition, the capital plan will also include investments to accelerate Foot Locker’s community-based, off-mall “power” store rollout in markets across the world, as well as to elevate the customer experience in core stores. In August, the retailer brought its community format to the West Coast, opening a 12,000-sq.-ft. location in Compton, Calif. It also has expanded the format to Canada, opening two locations.
Foot Locker also announced a 33% hike in its quarterly dividend to $0.20 per share from the previous dividend of $0.15. The new quarterly dividend will be paid on April 30 to shareholders of record as of April 16.
"These actions demonstrate our board of directors' confidence in resuming higher levels of investment into the business as we continue to build our strategic omnichannel position at the center of youth culture, while also returning more cash to shareholders through a significant dividend increase," said Richard Johnson, chairman and CEO, Foot Locker. "The strength of our financial position enables us to pursue these initiatives, while at the same time remaining engaged in our opportunistic share repurchase program and focused on canvassing the global marketplace for new growth prospects. Of course, given the lingering unknowns of the ongoing pandemic, we will retain flexibility and discipline with respect to our capital deployment."
Foot Locker operates approximately 3,000 retail stores in 28 countries across North America, Europe, Asia, Australia, and New Zealand as well as websites and mobile apps.