Foot Locker 2004 Annual Report Download - page 6

1988
•1,154 Foot Locker
stores; 461 Lady Foot
Locker stores; 10 Kids
Foot Locker stores.
•Robby’s Sports is
acquired and folded
into Champs Sports.
1989
•First Foot Locker store
opens in Australia.
1990
•Foot Locker Europe
Division established
with the acquisition
of Profoot in Belgium
and the Netherlands.
1991
•Freedom Sports
acquired in the
United Kingdom.
In February 2004, Moody's Investors
Services increased the Company's credit
rating to Ba1, citing improved operating
performance and financial position. While
we are encouraged by this progress, we
remain focused on continuing to improve
our credit ratings. In the meantime, we
believe that our capital structure effi-
ciently supports our existing business and
that we have excess borrowing capacity
should appropriate additional investment
opportunities arise.
Shareholder Returns
We remain firmly committed to providing
our shareholders with a meaningful cash
return – in addition to capital apprecia-
tion – on their investment. With this goal
in mind, and reflecting confidence in the
ability of management to continue to
grow the Company profitably, in
November 2004, the Board of Directors
increased the cash dividend on Foot
Locker, Inc.'s common stock by 25 per-
cent to an annualized amount of $0.30
per share.
Looking Forward
As we enter 2005, we are confident that
increased earnings per share will result
from continued implementation of the
strategic priorities outlined above, which
have generated so much of our recent suc-
cess. Substantial growth opportunities
have been identified and are being careful-
ly pursued as we expand in the global mar-
ketplace. Capital expenditures of $170 mil-
lion are planned for 2005, primarily target-
ed towards opening new stores, remodel-
ing and relocating existing stores, and
maintaining an efficient infrastructure.
Critical to our continued success is the
ongoing hard work and dedication of our
associates at all levels worldwide. They are
the backbone of our excellent infrastruc-
ture, and their efforts solidly position our
Company for the future. The outstanding
talent base that we possess represents, in
our view, a clear competitive advantage
over others that compete in the athletic
retail industry. At each of our operating
divisions, the management teams are deep
in both talent and years of experience.
Our corporate sales support functions –
including Sourcing, Logistics, Real Estate,
Finance, Information Systems, Human
Resources, Marketing and Legal – provide
a solid foundation that enables our busi-
nesses to grow profitably.
Our Company is fortunate to benefit
from the strategic direction and counsel
of a Board of Directors that comprises
individuals with a wide range of expert-
ise. In February 2005, we welcomed to
our Board Alan D. Feldman, President and
Chief Executive Officer of Midas, Inc., an
executive with many years of experience
in the consumer goods sector.
In addition, we would also like to take
this opportunity to thank our suppliers,
landlords and other business partners
who assist us in providing exceptional
goods and services to our valued cus-
tomers.
As we approach the midpoint of the
current decade, we already have many
achievements that we can highlight, from
worldwide growth to increased productiv-
ity, from a strengthened financial posi-
tion to solid operating and financial per-
formance. Ultimately, however, our
strategies, goals and initiatives are all
designed to achieve one overall commit-
ment: building shareholder value for the
long-term. We look forward to continuing
to deliver on this commitment to share-
holders and are excited about the bright
prospects for our Company.
Sincerely,
Matthew D. Serra
Chairman of the Board, President
and Chief Executive Officer
We are confident that increased earnings per share will result
from continued implementation of the strategic priorities which
have generated so much of our recent success.
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