Foot Locker Inc. (NYSE: FL) announced Friday it plans to cut about 120 jobs and close 117 stores by the end of this month, according to Associated Press.
The company also said it will consolidate its management staff in order to sharpen its attention to female shoppers' needs.
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The company said the job cuts would come in its home office and field management operations. The locations of the stores that will be closed were not disclosed.
Foot Locker said it plans to open 37 stores, close 190 stores and remodel or relocate 160 stores in its fiscal year that ends this month. It said 117 stores, mostly domestic Foot Locker and Lady Foot Locker locations, were likely to be closed in the fourth quarter.
It currently has about 3,600 stores in 21 countries in North America, Europe and Australia.
The company said it will consolidate Lady Foot Locker's management with that of its Foot Locker U.S., Kids Foot Locker and Footaction businesses.
Richard Johnson, the president and CEO of Foot Locker Europe, will become president and CEO of the combined division. Lewis Kimble will succeed Johnson as president and CEO of Foot Locker Europe. Kimble previously served as managing director of the Foot Locker Asia/Pacific unit.
Foot Locker President and CEO Ken Hicks, who left J.C. Penney Co. (NYSE: JCP) in July to take Foot Locker's top post, said the consolidation should help strengthen its brands' position in the retail sector and improve coordination of its women's product assortments.
Foot Locker expects the job cuts will result in a charge of $3 million, or 2 cents per share, in its fiscal fourth quarter.
It anticipates the job cuts and management consolidation will help save about $10 million in expenses in 2010.
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