Foot Locker approves new $1.2B share repurchase plan, hikes dividend 10%
Foot Locker announced that its Board of Directors authorized three capital allocation initiatives to both sustain meaningful investment in the business and reward long-term shareholders. First, its Board of Directors declared a quarterly cash dividend on the company's common stock of 38c per share, which will be payable on May 3 to shareholders of record on April 18. The 10% increase in the dividend is the ninth consecutive year with a dividend increase in the double-digit percent range and is equivalent to an annualized rate of $1.52 per share. Second, the Board of Directors approved a new 3-year, $1.2B common share repurchase program extending through January 2022, replacing the company's previous $1.2B program. Through the end of fiscal 2018, the Company had spent $817M under that program since it was announced two years ago. Third, the Board of Directors approved a $277M capital expenditures program for 2019, compared to the approximately $200M in 2018. The capital spending planned for 2019 reflects increased investments in the company's store fleet in all existing regions, including Asia, and in its digital initiatives. In addition, the company will continue to spend capital to build out its supply chain and other infrastructure capabilities.