Foot Locker furloughs North America, Australia staff

By

Jennifer Braun

Published
Apr 24, 2020

Foot Locker Inc. is the latest major retailer to announce furloughs, as the Covid-19 crisis continues to force temporary store closures.  

In a regulatory filing, the NYC-based sports and footwear retailer said on Thursday that it will furlough the majority of the company’s store employees in the U.S. and Canada, as well as certain of its store employees in Australia and supply chain employees in the United States.

The furlough period will begin on April 26, 2020 and will last indefinitely. 

Employees will be eligible for unemployment benefits and will also continue to receive their currently-enrolled health and other benefits in accordance with the terms of their respective plans. 

Foot Locker equally announced plans to reduce executive salaries, to further protect its financial position. 

Its CEO will take a salary reduction of 40 percent; its executive vice presidents and senior vice presidents a salary reduction of 20 percent; and corporate vice presidents and general manager-level roles a salary reduction of 10 percent. 

In addition, the company is temporarily suspending its share repurchase program, and reducing capital expenditures by 50 percent, for the fiscal year ended January 30, 2021, to increase its cash position and provide additional flexibility.
 
Foot Locker closed all of its stores in North America, EMEA and Malaysia on March 17.

The company ended its latest fiscal year with 3,129 company-operated stores in 27 countries spread across North America, Europe, Asia and Oceania. There are also currently 130 franchised Foot Locker stores in the Middle East and 9 franchised Runner Point locations in Germany.

In light of the ongoing health crisis, the company has also withdrawn its previously reported financial guidance for the full fiscal year 2020.