Foot Locker, Inc. (NYSE:FL) Q1 2020 Earnings Conference Call - Final Transcript

May 22, 2020 • 09:00 am ET


Foot Locker, Inc. (NYSE:FL) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Foot Locker's First Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.

This conference may contain forward-looking statements that reflect management's current views of future events and financial performance. Management undertakes no obligation to update these forward-looking statements, which are based on many assumptions and factors, including the impact of COVID-19, effects of currency fluctuations, customer preferences, economic and market conditions worldwide, and other risks and uncertainties described more fully in the company's press release and in reports filed with the SEC, including the most recently filed Form 10-K and Form 10-Q. Any changes in such assumptions or factors could produce significantly different results and actual results may differ materially from those contained in the forward-looking statements. Please note that this conference call is being recorded.

I will now turn the call over to your host for today, Jim Lance, Vice President of Corporate Finance and Investor Relations, Mr. Lance, you may begin.

James Lance

Thanks, operator. Welcome everyone to Foot Locker, Inc.'s first quarter earnings conference call. As reported in today's earnings release, the company reported a first quarter net loss of $98 million compared to net income of $172 million for the first quarter last year. On a per share basis, the loss in the first quarter was $0.93 compared to earnings per share of $1.52 last year. This year's quarter includes a $27 million tax charge related to a periodic revaluation of certain intellectual property rights pursuant to a non-US advance pricing agreement and a $1 million charge related to the pension matter we have previously discussed. Last year, the Q1 results included an incremental $1 million charge related to the same pension matter. Excluding these items on a non-GAAP basis, the first quarter loss was $0.67 per share compared to earnings per share of $1.53 last year.

Unless otherwise noted, the figures and rates mentioned during our call today will be based on non-GAAP results. A reconciliation of GAAP to non-GAAP results is included in this morning's press release.

Flow of today's call will be a bit different than usual. The call is being hosted remotely in order to uphold shelter in place orders and social distancing protocols with presenters calling in from different locations. We will begin our prepared remarks with Dick Johnson, Chairman and Chief Executive Officer who will provide an update on how Foot Locker is navigating the COVID-19 pandemic, staying connected with our customers and working to best position the business operationally and financially in the months ahead. As part of this, Elizabeth Norberg, Senior Vice President and Chief Human Resources Officer will highlight steps we're taking to protect the health and safety of our team members and customers as we continue to reopen our global store fleet. Lauren Peters, Executive Vice President and Chief Financial Officer will then review our first quarter results and discuss the steps we've taken to maximize liquidity,