In its second-largest acquisition, Amazon buys the company for $970 million.
Overall sales and profit increase for the year and Q4.
Footwear retailer Foot Locker Inc. posted double-digit growth in sales and profit for both 2012 and the fourth quarter of the year.
For the year ended Feb. 2, Foot Locker, No. 54 in the Internet Retailer Top 500 Guide, reported:
- Web sales of about $612 million, a 33.9% increase from $457 million in 2011, based on Foot Locker’s guidance that e-commerce accounted for 9.9% of 2012 sales. Foot Locker did not provide total e-commerce sales.
- Total sales increased 10.0% to $6.18 billion, compared with $5.62 billion in 2011.
- Comparable-store sales increased 9.4%.
- Net income was $397 million, an increase of 42.8% compared with net income of $278 million in the prior year.
Foot Locker says e-commerce sales accounted for 9.9% of all sales in 2012 compared with 8.2% in 2011.
Overall e-commerce sales were strong in 2012, said Kenneth C. Hick, chairman, CEO and president, said during the call. “We increased the coordination across digital and store organizations, upgraded all of our mobile and online sites and enhanced our customer engagement features,” Hick said. Foot Locker’s goal is for each of its seven brands to generate 10% of its sales from e-commerce, he said. “Although we still have a distance to go to reach this goal, we made significant progress in each of our banners,” he said. In addition to Foot Locker, the company also operates Lady Foot Locker, Kids Foot Locker, Foot Action, Champs Sports and Eastbay stores.
E-commerce sales will grow in importance in 2013 as Foot Locker transitions its CCS skate and snowboard apparel brand to a web-only store. “We believe we have the scale and expertise to be successful,” Lauren B. Peters, chief financial officer, said during an earnings call with analysts. Foot Locker will take a $12 million charge, and close all 22 CCS stores this quarter.
For the fourth quarter ended Feb. 2, Foot Locker reported:
- E-commerce sales increased 18.2% to an Internet Retailer estimate of $174.9 million from $148 million in the same quarter a year ago.
- Total sales of $1.71 billion, up by 14.0% from $1.50 billion in the fourth quarter of 2011.
- Comparable-store sales increased by 7.9%.
- Net income of $104 million, a 28.4% increase from $81 million in Q4 2011.
Online sales represented 10.2% of total sales, compared with 9.9% in Q4 2011.