Foot Locker 2004 Annual Report Download - page 10

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8
As the Company's second largest business in terms of annual sales and store base, Champs Sports
is also one of the largest mall-based athletic retailers in North America. Since the Company's acqui-
sition of this business in 1987, Champs Sports has grown steadily, emerging as a major player in
the athletic retailing industry. At year-end, the Company operated 570 Champs Sports stores, with
534 stores in the United States and 36 stores in Canada. The Company believes that its existing
Champs Sports stores are well positioned in highly-trafficked shopping areas and that, over time,
approximately 200 profitable stores can be added.
Its store footprint, which averages 5,600 gross square feet, provides the opportunity to offer a
somewhat wider array of athletic footwear, apparel and accessories than the Company's other busi-
ness formats. Champs Sports also differentiates its strategy from the Company's other businesses
by targeting a more suburban customer who is 12 to 25 years old, and is both performance and
fashion-conscious.
During 2004, comparable-store sales at Champs Sports improved noticeably, as the stores began
to offer additional quantities of marquee athletic footwear that had not previously been available
to this business. The Company is encouraged that Champs Sports will benefit from both a contin-
uing strong comparable-store sales trend and a resulting strong profit increase in 2005.
1999
•3,693 athletic stores
worldwide, including
289 in Europe.
•Footlocker.com is
launched with sales
totaling $14 million.
•New distribution
center opens in
the Netherlands. •28,000-sq.-ft. flagship
store on New York's
34th Street opens.
Champs Sports' recent strong comparable-store sales trend is expected
to continue in 2005 and contribute to a strong profit increase.