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Foot Locker Reveals Capital Spending Plan Before Q4 Earnings
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With just a few days to go for Foot Locker, Inc.’s (FL - Free Report) fourth-quarter fiscal 2018 earnings release, the company has ramped up its capital spending plans. The company is slated to announce financial results on Mar 1. This New York-based company has rewarded shareholders with a hike of 10% in quarterly dividend to 38 cents. This marks the company’s ninth successive quarter of dividend hike in double digits.
Foot Locker revealed a capital expenditure program of $275 million for fiscal 2019, an increase from $200 million assigned for the prior year’s program. The company plans to spend the capital strategically, with primary focus on developing digital competencies. Also, it is on track to enhance supply chain and spend on other infrastructural activities.
Apart from these, the company plans to spend part of the capital on its fleet of stores across its existing regions including Asia. Further, this Zacks Rank #2 (Buy) company’s board announced a new 3-year share buyback program worth $1.2 billion.
Bottom Line
Certainly, the aforementioned capital allocation plans raise optimism. Notably, shares of the company have rallied 15.2% in the past six months, against the industry’s decline of 25.9%. Foot Locker is trying to improve its performance through its operational and financial initiatives. Management is of the opinion that the company will benefit by continually capitalizing on opportunities like shop-in-shop expansion in collaboration with its vendors, store refurbishment and enhancement of assortments. The company has taken initiatives like better price, enhancement of omni-channel capabilities and addition of unique products to the portfolio to stay competitive.
The company is effectively managing inventory, investing in digital platforms and improving supply-chain efficiencies. The company’s digital endeavors comprise improvement of mobile and web platforms, implementation of new point-of-sale software worldwide, and expansion of data analytics capabilities.
Boot Barn Holdings (BOOT - Free Report) has long-term earnings growth rate of 20.7% and a Zacks Rank #1.
DSW, Inc has long-term earnings growth rate of 9% and a Zacks Rank #1.
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Foot Locker Reveals Capital Spending Plan Before Q4 Earnings
With just a few days to go for Foot Locker, Inc.’s (FL - Free Report) fourth-quarter fiscal 2018 earnings release, the company has ramped up its capital spending plans. The company is slated to announce financial results on Mar 1. This New York-based company has rewarded shareholders with a hike of 10% in quarterly dividend to 38 cents. This marks the company’s ninth successive quarter of dividend hike in double digits.
Foot Locker revealed a capital expenditure program of $275 million for fiscal 2019, an increase from $200 million assigned for the prior year’s program. The company plans to spend the capital strategically, with primary focus on developing digital competencies. Also, it is on track to enhance supply chain and spend on other infrastructural activities.
Apart from these, the company plans to spend part of the capital on its fleet of stores across its existing regions including Asia. Further, this Zacks Rank #2 (Buy) company’s board announced a new 3-year share buyback program worth $1.2 billion.
Bottom Line
Certainly, the aforementioned capital allocation plans raise optimism. Notably, shares of the company have rallied 15.2% in the past six months, against the industry’s decline of 25.9%. Foot Locker is trying to improve its performance through its operational and financial initiatives. Management is of the opinion that the company will benefit by continually capitalizing on opportunities like shop-in-shop expansion in collaboration with its vendors, store refurbishment and enhancement of assortments. The company has taken initiatives like better price, enhancement of omni-channel capabilities and addition of unique products to the portfolio to stay competitive.
The company is effectively managing inventory, investing in digital platforms and improving supply-chain efficiencies. The company’s digital endeavors comprise improvement of mobile and web platforms, implementation of new point-of-sale software worldwide, and expansion of data analytics capabilities.
Looking for More High-Performance Stocks
Zumiez Inc. (ZUMZ - Free Report) has long-term earnings growth rate of 12.5% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn Holdings (BOOT - Free Report) has long-term earnings growth rate of 20.7% and a Zacks Rank #1.
DSW, Inc has long-term earnings growth rate of 9% and a Zacks Rank #1.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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