Foot Locker 2004 Annual Report Download - page 12

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10
2002
•10,000-sq.-ft. store on New York's
Times Square opens.
•Debt, net of cash, is reduced
from $184 million to zero.
2003
•Foot Locker, Inc.'s NYSE ticker
symbol changes from Z to FL.
•International sales surpass
$1 billion.
The Company remains encouraged that Lady Foot Locker and
Kids Foot Locker will continue to produce improving financial results.
Lady Foot Locker was developed by the Company in 1982 to court the active woman who is inter-
ested in athletically-inspired footwear and apparel. During the past 20-plus years, Lady Foot Locker
– currently with 567 stores in the United States, averaging 2,200 gross square feet per store – has
emerged as a destination location for the 14 to 35 year old female shopper.
In 2004, Lady Foot Locker embarked on a merchandise refocusing effort aimed at providing
greater appeal to its target customer. Central to this effort was the modification of its branded and
private-label apparel offerings. The new merchandise has been well received by the consumer, con-
tributing to increased comparable-store sales and division profit. The Company is confident that
Lady Foot Locker will continue to benefit from these programs during 2005, and is excited about
the continuing potential and prospects of this business.
In 1987, the Company opened its first Kids Foot Locker store, building on the strong Foot Locker
brand reputation and its extensive knowledge of the footwear industry. Kids Foot Locker today is
the market leader in selling children's athletic footwear and apparel. The business operates 346
stores in the United States that average 2,400 gross square feet. The typical shopper in a Kids Foot
Locker store is a mother of a 5 to 11 year old child.
Kids Foot Locker produced a solid comparable-store sales gain and strong profit increase dur-
ing 2004 by building on several initiatives that were implemented in the prior year. As a result,
this business reported a division profit margin rate in 2004 that was in line with the Company
average and expectations. The Company remains encouraged that Kids Foot Locker will continue to
produce strong and improving results.