Foot Locker, Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended on February 1, 2014; Provides Capital Expenditure Guidance for 2014
Mar 7 14
Foot Locker, Inc. reported unaudited consolidated financial results for the fourth quarter and full year ended on February 1, 2014. The company reported net income of $121 million, or $0.81 per diluted share, for the 13 weeks ended February 1, 2014. This represents an increase of 19% over earnings per diluted share of $0.68 for the 14-week period ended February 2, 2013. On a non-GAAP basis, the company earned $0.82 per share, a 28% increase over the comparable 13-week non-GAAP earnings per share of $0.64 in 2012. Total fourth quarter sales increased 4.6 percent, to $1,791 million this year, compared with sales of $1,713 million in 2012, which included $81 million of sales in the extra week last year. Fourth quarter comparable-store sales increased 5.3%. Income before taxes was $181,000 against $158,000 for the same period of last year.
For fiscal year 2013, the company reported net income of $429 million, or $2.85 per diluted share. In the 53-week period in 2012, the company reported net income of $397 million, or $2.58 per diluted share. On a non-GAAP basis, earnings were $2.87 per share in 2013, an increase of 16% over the $2.47 per share earned on a comparable basis in 2012. In 2013 the company generated its fourth consecutive double digit percentage increase in annual earnings per share. It is also the third consecutive year in which the company achieved record earnings as Foot Locker, Inc. Total sales increased 5.2% in 2013 to $6,505 million, the highest level of sales ever recorded by the Company as Foot Locker, Inc., compared with sales of $6,182 million last year. Comparable-store sales increased 4.2% in 2013. Income before taxes was $663,000 against $607,000 for the same period of last year.
The Board has also authorized a capital expenditure program in 2014 of $220 million, based on the successful results to date of the store remodel and other capital initiatives have underway.
Federal Appeals Court Rules No Harm Required to Seek Plan Reformation in Suit Against Foot Locker, Inc
Feb 24 14
The 2nd U.S. Circuit Court of Appeals agreed to take up the case on appeal from plaintiff Geoffrey Osberg who claimed his employer, Foot Locker, issued false and misleading summary plan descriptions (SPDs) in violation of the Employee Retirement Income Security Act's (ERISA) disclosure requirements, especially ERISA section 102(a) and 29 U.S.C. 1104(a), when it converted from a defined contribution plan to a cash balance plan. Osberg also appealed the summary dismissal of his claim that Foot Locker failed to provide plan participants with notice, as required by ERISA section 204(h) and 29 U.S.C. 1054(h), that the cash balance arrangement could potentially reduce future benefit accruals. As to his disclosure claims, Osberg contended on appeal that a district court erred in holding his 102(a) claim time-barred, and in finding that he failed to raise a genuine issue of material fact entitling him to surcharge and contract reformation on either 102(a) or 404(a) claims. The 2nd Circuit agreed with Osberg that the district court erroneously applied an 'actual harm' requirement. Foot Locker argued that, as a former employee, Osberg lacks standing to pursue contract reformation and cannot show fraud or mutual mistake entitling him to reformation. The court also concluded that because reformation of the plan would afford Osberg the total relief sought, there is no need for it to decide whether he would also be entitled to recovery under surcharge. On this point the Circuit court disagreed with Foot Locker and the lower court, and proceeded to remand the determination of whether Osberg can satisfy the true requirements for obtaining contract reformation back to the district court for further consideration in light of the fact that he need not prove actual harm to obtain relief through reformation or surcharge. The U.S. District Court for the Southern District of New York had issued a summary judgment of all charges in favor of Foot Locker Inc. and the Foot Locker Retirement Plan. The case alleged that Foot Locker management proffered misleading explanations of the plan's conversion from a traditional pension formula to a cash balance formula, which more closely resembles a defined contribution (DC) arrangement by defining a future benefit in terms of a stated account balance, rather than a particular level of lifetime benefit. In a typical cash balance plan, a participant's account is credited each year with a 'pay credit' (such as 5% of compensation from the employer) and an 'interest credit' (either a fixed rate or a variable rate that is linked to an index such as the one-year Treasury bill rate). Increases and decreases in the value of the plan's investments do not directly affect the benefit amounts promised to participants, so like in DB plans, the investment risks are borne by the employer.
Foot Locker, Inc. to Report Q4, 2013 Results on Mar 07, 2014
Feb 20 14
Foot Locker, Inc. announced that they will report Q4, 2013 results at 9:00 AM, Eastern Standard Time on Mar 07, 2014