CONTACT: John A. Maurer
Vice President,
Treasurer and Investor Relations
Foot Locker, Inc. (212) 720-4092
FOOT LOCKER, INC. ANNOUNCES UPDATED STRATEGIC PLAN AND ELEVATED LONG-TERM FINANCIAL OBJECTIVES
NEW YORK, NY, March 6, 2012- Ken C. Hicks, Chairman and Chief
Executive Officer of Foot Locker, Inc. (NYSE: FL), the New
York-based specialty athletic retailer, and other senior
members of the management team today announced an updated
strategic plan and set of operating initiatives intended to
further elevate the Company's long-term financial performance
for the period 2012 through 2016. The announcement came
during an investor meeting held this morning.
The Company initially announced a new set of strategies and
long-range financial objectives for Foot Locker, Inc. almost
exactly two years ago. "The strategies our team identified
and began implementing two years ago have elevated our
financial and operational performance, and this was evident
in the strong 2011 results we announced last week," Mr. Hicks
said. "Given that we are only two years along in a five-year
plan, we have more
progress to make on the current initiatives we established to
achieve our vision of being the leading global retailer of
athletically inspired footwear and apparel. However, because
we have already achieved several of our initial financial
goals, and because we have identified significant new
opportunities that we believe can drive our
business to even higher levels of performance, our team has
updated our strategic priorities and actions, as well
as our long-term financial objectives."
Specifically, the Company's new strategic priorities are:
Create a clear customer focus to drive performance in its
core athletic banners
Make its stores and internet sites more exciting, relevant
places to shop and buy
Deliver exceptional growth in high-potential business
segments
Aggressively pursue brand expansion opportunities
Increase the productivity of all of its assets
Build on its Industry Leading Retail Team
The Company also substantially raised the financial
objectives it expects to achieve over the next five
years:
Sales of $7.5 billion
Sales per Gross Square Foot of $500
EBIT Margin of 11 percent
Net Income Margin of 7 percent
Return on Invested Capital of 14 percent
Inventory Turnover of 3+ times
Foot Locker, Inc. 112 West 34th Street, New York, NY 10120
Mr. Hicks concluded, "The entire team at Foot Locker, Inc.
deserves a tremendous amount of credit for all they have
accomplished in such a short amount of time. One of the
foremost strengths of our team, however, is its clear focus
on the future, and meeting these new financial objectives
will require us to reach well beyond what the Company has
ever achieved as Foot Locker, Inc. Given the strength of the
Company and the opportunities we see ahead of us, we believe
we are well-positioned to succeed."
The meeting was webcast live this morning. A webcast replay
will be available until 5pm ET on Friday, March
30, 2012 from the
Investor Relations section of the Foot Locker, Inc. website
at http://www.footlocker-inc.com.
Foot Locker, Inc. is a specialty athletic retailer that
operates almost 3,400 stores in 23 countries in North
America, Europe and Australia. Through its Foot Locker, Lady
Foot Locker, Kids Foot Locker, Footaction and Champs Sports
stores, as well as its direct-to-customers channel
Footlocker.com/Eastbay/CCS, the Company is the leading
provider of athletic footwear and apparel.
This report contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, dividend payments, stock repurchases, growth of the Company's business and operations, including future cash flows, revenues, and earnings, and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors which are detailed in the Company's filings with the Securities and Exchange Commission, including the effects of currency fluctuations, customer demand, fashion trends, competitive market forces, uncertainties related to the effect of competitive products and pricing, customer acceptance of the Company's merchandise mix and retail locations, the Company's reliance on a few key vendors for a majority of its merchandise purchases (including a significant portion from one key vendor), pandemics and similar major health concerns, unseasonable weather, further deterioration of global financial markets, economic conditions worldwide, further deterioration of business and economic conditions, any changes in business, political and economic conditions due to the threat of future terrorist activities in the United States or in other parts of the world and related U.S. military action overseas, the ability of the Company to execute its business and strategic plans effectively with regard to each of its business units, and risks associated with foreign global sourcing, including political instability, changes in import regulations, and disruptions to transportation services and distribution. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.
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