Foot Locker’s web sales grow 8.8% in 2015
March 1, 2016 12:48 PM
Foot Locker Inc. booked sales and earnings growth in 2015 as web sales accounted for a larger chunk of revenue.
“Our digital business had another successful quarter and year,” president and CEO Richard Johnson told analysts on the company’s year-end earnings call Friday. “We have invested in mobile and desktop sites as well as apps to deliver an enhanced digital experience, including more personalized interactions with our customers. As you can imagine from our young customers, mobile represents a huge part of our online traffic and a rapidly growing percent of our digital sales.”
For the 2015 fiscal year ended Jan. 30, Foot Locker reported:
- E-commerce accounted for 12.7% of total sales in 2015 and 12.1% in the prior year, Johnson told analysts, according to a transcript from Seeking Alpha. Based on those metrics, 2015 web sales were $941.1 million, up 8.8% from $865.2 million in fiscal 2014.
- Total sales increased 3.6% to $7.41 billion, from $7.15 billion in 2014.
- Comparable-store sales increased 8.5%.
- Net income of $541 million up 4.0% from $520 million in 2014.
Foot Locker, No. 54 in the Internet Retailer 2015 Top 500 Guide plans to expand and enhance its Lady Foot Locker SIX:02 division, which offers workout apparel and shoes online and in stores. The merchant plans to redesign its Six02.com website this year. It opened 15 SIX:02 stores in 2015, for a total of 30, but Foot Locker will dial down store openings to “focus on developing brand awareness, resetting the product assortments” and enhancing its two flagship stores in New York, Johnson said.
Other plans for 2016 include $297 million in capital expenditures, up from $225 million in 2015, chief financial officer Lauren Peters told analysts, including $20 million to build out its new New York headquarters “and a similar amount for our new online order management system and related customer experience initiatives.”
Capital outlays also include opening about 90 stores in Europe, Kids Foot Locker stores in the U.S., and Footaction stores, which offer trendy shoe styles to young men, Peters said. “We expect to spend more than $200 million on improving our store fleet in 2016.”
For the fourth quarter, Foot Locker did not break out online sales but did report:
- Total sales increased about 5.0%, to $2.0 million from $1.9 million in 2014.
- Comparable-store sales increased 7.9%.
- Net income of $158 million up 8.2% from $146 million.
Foot Locker earned a No. 50 rating Internet Retailer’s recently released Best Natural Search Marketers in E-Commerce, based on an algorithm that takes multiple metrics into account.