Foot Locker 2004 Annual Report Download - page 13

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•Foot Locker stock more than
doubles, trading at a high of
$25.97.
•Net Income surpasses $200
million.
2004
•3,967 athletic stores world-
wide, including 485 in Europe.
•Foot Locker, Inc. buys 349
Footaction stores.
•Company purchases 11 stores
in Republic of Ireland.
•Sales surpass $5 billion.
•Foot Locker, Inc. rings closing
bell at NYSE in celebration of
its 30th anniversary.
Footlocker.com is the world's leading retailer that sells athletic footwear,
apparel and equipment via catalogs and E-commerce websites.
In January 1997, Foot Locker, Inc. acquired Eastbay as a means to expand its customer base by sell-
ing athletic footwear, apparel and equipment direct to customers through catalogs. Subsequent to
the acquisition, the Company developed a strategy to significantly expand this business by also sell-
ing athletic merchandise direct to customers through the Internet. The Company has actively pur-
sued this strategy during the past several years and has successfully integrated its catalog and
Internet operations within a single, highly-efficient infrastructure.
Today, the Company's direct-to-customers business, Footlocker.com, is the world's leading retail-
er that sells athletic footwear, apparel and equipment via catalogs and E-commerce websites.
Footlocker.com's annual sales were $366 million in 2004, of which 58 percent was derived from its
websites and 42 percent from its catalogs. More importantly, the division profit of Footlocker.com
was $45 million, or 12.3 percent of sales.
The profitable growth of Footlocker.com over the past several years is largely attributable to its
ability to appeal to a wider customer base than those who typically shop in the Company's retail
stores. From the fashion-sensitive teenage consumer who seeks the latest trends and styles, to the
sports enthusiast seeking the most up-to-date technical footwear, Footlocker.com offers a wide
assortment of styles and sizes and strives to maintain an excellent in-stock position.
In addition to selling direct to customers through the Company's various brand-name websites,
Footlocker.com has also forged strong partnerships with several well-known third parties, providing
development, merchandising, fullfillment and customer service. These third parties include the
National Football League, National Basketball Association, Amazon.com, United States Olympic
Committee, ESPN and several of the Company's key suppliers.
11