Foot Locker(US:FL)2024-03-28 21:03Workforce and Employee Relations - As of February 3, 2024, the company had 14,335 full-time and 32,511 part-time employees, indicating a strong workforce[20] - The company aims to create a diverse and inclusive work environment, enhancing employee relations and retention[21] - The compensation program is designed to attract and retain talent, offering competitive salary, incentive bonuses, and equity[22] - The company’s people strategy focuses on career growth and professional development to enhance team members' capabilities[21] Financial Performance - Total revenue for 2023 was $8,168 million, a decrease of 6.7% from $8,759 million in 2022[212] - Net loss attributable to Foot Locker, Inc. for 2023 was $330 million, compared to a net income of $342 million in 2022[214] - Basic loss per share from continuing operations was $(3.51) in 2023, down from earnings of $3.66 in 2022[212] - Net income for the year was reported at $341 million, a decrease from $892 million the previous year, indicating a decline of about 62%[219] - The company reported a total of 4.5 million anti-dilutive share-based awards excluded from diluted calculations in 2023, up from 2.7 million in 2022[236] - Division profit for 2023 was $264 million, down from $844 million in 2022 and $1,171 million in 2021[289] - Income from operations decreased to $142 million in 2023 from $581 million in 2022 and $870 million in 2021[289] Inventory and Assets - The company's merchandise inventories were valued at $1,509 million as of February 3, 2024[205] - Merchandise inventories decreased to $1,509 million in 2024 from $1,643 million in 2023, reflecting a reduction of 8.1%[216] - Total long-lived assets decreased to $3,118 million in 2023 from $3,363 million in 2022 and $3,533 million in 2021[291] - Total assets decreased to $6,868 million in 2023 from $7,907 million in 2022 and $8,135 million in 2021[292] Liabilities and Equity - Total liabilities decreased to $3,978 million in 2024 from $4,614 million in 2023, a reduction of 13.8%[217] - Total shareholders' equity increased to $3,293 million as of February 3, 2024, compared to $2,890 million in the previous year, reflecting a growth of approximately 14%[219] - The balance of retained earnings stood at $2,925 million, reflecting a decrease of $88 million from the previous year[219] Cash Flow and Investments - Cash and cash equivalents decreased to $297 million in 2024 from $536 million in 2023, a decline of 44.6%[216] - The company experienced a decrease in net cash provided by operating activities, which fell to $91 million in 2023 from $173 million in 2022[220] - Foot Locker's net cash used in investing activities was $222 million in 2023, compared to $162 million in 2022[220] - The company recognized a non-cash impairment charge of $478 million related to a minority investment in 2023[300] Tax and Deferred Tax - The total income tax provision for 2023 is $(93) million, a decrease from $180 million in 2022[336] - Deferred tax assets as of February 3, 2024, total $928 million, with a valuation allowance of $95 million[341] - The company has accumulated undistributed foreign earnings of $511 million, which are permanently reinvested[337] Pension and Benefit Obligations - The benefit obligation at the beginning of 2023 was $566 million, down from $674 million in 2022, reflecting a decrease of approximately 16%[374] - The net benefit expense for 2023 was $90 million, significantly higher than $14 million in 2022, indicating a substantial increase in pension costs[386] - The accumulated benefit obligation for the U.S. qualified pension plan was $400 million in 2023, down from $533 million in 2022, showing a decrease of approximately 25%[375] Shareholder Actions - Cash dividends on common stock were $330 million, with a dividend per share of $1.20, compared to $150 million and $1.60 per share in the prior year[219] - Share repurchases totaled 4,050 thousand shares, resulting in a reduction of $129 million in equity[219] - The company retired 6,019,212 shares of common stock in 2022, with no shares retired in 2023[271] Impairments and Charges - A minority investment was recorded at a carrying value of $134 million, with an impairment charge of $478 million during the fourth quarter of 2023[209] - The company reported an impairment and other expense of $80 million in 2023, down from $112 million in 2022[212] - Goodwill impairment charges totaled $167 million for all periods presented, with no impairment identified in the fourth quarter of 2023[257] Revenue Breakdown - Store sales amounted to $6,751 million in 2023, down from $7,219 million in 2022, reflecting a decline of 6.5%[277] - Revenue from the United States was $5,409 million in 2023, down 9.6% from $5,981 million in 2022[278] - International revenue was $2,759 million in 2023, slightly down from $2,778 million in 2022, a decrease of 0.7%[278]