Foot Locker 2005 Annual Report Download - page 13

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Footlocker.com, the Company's direct-to-customers business, is
the world's leading retailer that sells athletic footwear, apparel
and equipment via catalogs and E-commerce websites. This busi-
ness includes the well-known Eastbay brand, which the Company
acquired almost 10 years ago as a means to expand its customer
base by selling athletic footwear, apparel and equipment through
a well-managed catalog operation.
During the past several years, the business has expanded rapid-
ly, primarily by developing E-commerce websites capitalizing on the
Company's highly-recognizable brand names. Another strategy that
has contributed to this division's success entails arrangements with
well-known third parties, whereby Footlocker.com provides the
development, merchandising, fulfillment and customer service to
support catalog and E-commerce sales. These third parties include
the National Basketball Association, Arena Football League,
Amazon.com, United States Olympic Committee, ESPN and several
of the Company's key suppliers.
Today, Footlocker.com is a well-run business with its catalog
and Internet operations integrated within a single, highly effi-
cient infrastructure, including a distribution center with sufficient
capacity to support management's near-term growth plans. This
business is complementary to the Company's retail stores due to
its appeal to a wider customer base by offering a greater assort-
ment of styles and sizes, and more technically oriented sporting
goods with the convenience of shopping from home.
In 2005, Footlocker.com produced very solid financial results
with sales increasing 4.1 percent versus last year, to $381 million.
The division profit of Footlocker.com increased 6.7 percent versus
last year to $48 million, maintaining a solid 12.6 percent of sales.
11
Footlocker.com is the world's leading retailer that sells athletic footwear,
apparel and equipment via catalogs and E-commerce websites.