A week ahead of its fourth-quarter earnings announcement, Foot Locker Inc.’s board of directors approved a $297 million capital expenditure program for 2016. That’s a significant increase from the company’s 2015 spending total, of roughly $225 million.
In a statement, the firm said it plans to use those additional funds to support a number of new growth initiatives, including the ongoing remodel of stores across its multiple retail banners, including Foot Locker, Champs and Footaction.
It also plans to roll out additional shop-in-shop spaces in partnership with key vendors, and continue to expand its kids’ and European businesses. Another priority is fueling technological improvements in its logistics and digital operations.
“The investments we have made in the business continue to be highly productive and strongly position us as leaders in the athletic retail industry,” said Foot Locker President and CEO Richard Johnson in the statement. “In 2016, we will continue to invest in our strategic growth pillars while also seeking to lead in generating total shareholder returns.”
Foot Locker, which was selected by FN as the 2015 Company of the Year, has been a bright spot in an otherwise-lackluster retail environment, with a steady string of robust numbers. For its most recent Q3, the firm recorded an 8.7 percent increase in comparable-store sales and surpassed analysts’ expectations for earnings per share.
As part of its 2016 capital allocation plan, the board of directors voted to reward investors with a 10 percent increase in its quarterly cash dividend, payable on April 29, 2016 to shareholders of record on April 15, 2016.