Foot Locker 2005 Annual Report Download - page 23

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Champs Sports — Champs Sports is one of the largest mall-based specialty athletic footwear and apparel retailers in
the United States. Its product categories include athletic footwear, apparel and accessories, and a focused assortment of
equipment. This combination allows Champs Sports to differentiate itself from other mall-based stores by presenting
complete product assortments in a select number of sporting activities. Its 556 stores are located throughout the United
States, Canada and the United States Virgin Islands. The Champs Sports stores have an average of 3,800 selling square feet.
Footaction — Footaction is a national athletic footwear and apparel retailer that offers street-inspired fashion styles.
The primary customers are young urban males with the secondary customers being young urban women with diverse fashion
needs. Its 363 stores are located throughout the United States and Puerto Rico and focus on marquee allocated footwear
and branded apparel. The Footaction stores have an average of 2,900 selling square feet.
Lady Foot Locker — Lady Foot Locker is a leading U.S. retailer of athletic footwear, apparel and accessories for women.
Its stores carry all major athletic footwear and apparel brands, as well as casual wear and an assortment of proprietary
merchandise designed for a variety of activities, including running, basketball, walking and fitness. Its 554 stores are located
in the United States, Puerto Rico and the United States Virgin Islands and have an average of 1,300 selling square feet.
Kids Foot Locker — Kids Foot Locker is a national children’s athletic retailer that offers the largest selection of brand-
name athletic footwear, apparel and accessories for infants, boys and girls, primarily on an exclusive basis. Its stores
feature an entertaining environment geared to both parents and children. Its 327 stores are located in the United States,
Puerto Rico, and the United States Virgin Islands and have an average of 1,400 selling square feet.
Store Profile
At
January 29, 2005 Opened Closed
At
January 28, 2006
Foot Locker ............................... 2,135 75 89 2,121
Champs Sports ............................ 570 11 25 556
Footaction ................................ 349 24 10 363
Lady Foot Locker.......................... 567 8 21 554
Kids Foot Locker .......................... 346 1 20 327
Total Athletic Stores ...................... 3,967 119 165 3,921
Direct-to-Customers
Footlocker.com — Footlocker.com, Inc., sells, through its affiliates, directly to customers through catalogs and its
Internet websites. Eastbay, Inc., one of its affiliates, is one of the largest direct marketers of athletic footwear, apparel,
equipment and team licensed private-label merchandise in the United States and provides the Company’s eight full-service
e-commerce sites access to an integrated fulfillment and distribution system. The Company has a strategic alliance to offer
footwear and apparel on the Amazon.com website and the Foot Locker brands are featured in the Amazon.com specialty
stores for apparel and accessories and sporting goods. The Company also has an arrangement with the NBA and
Amazon.com whereby Footlocker.com provides the fulfillment services for NBA licensed products sold over the Internet
at NBAstore.com and the NBA store on Amazon.com. In addition, the Company has a marketing agreement with the
U.S. Olympic Committee (USOC) providing the Company with the exclusive rights to sell USOC licensed products through
catalogs and via a new e-commerce site. The Company has an agreement with ESPN for ESPN Shop — an ESPN-branded
direct mail catalog and e-commerce site linked to www.ESPNshop.com, where fans can purchase athletic footwear, apparel
and equipment which will be managed by Footlocker.com. Both the catalog and the e-commerce site feature a variety
of ESPN-branded and non-ESPN-branded athletically inspired merchandise.
Overview of Consolidated Results
Sales increased by 5.6 percent to $5,653 million representing a comparable-store increase of 2.7 percent. Income
from continuing operations before income taxes increased by 8.3 percent to $405 million. Diluted earnings per share was
$1.67 from continuing operations in 2005 as compared with $1.64 in the corresponding prior year period.
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