Foot Locker 2005 Annual Report Download - page 6

stores. Therefore, we expect our athletic
store base to increase by 1-to-2 percent
in 2006 and, at year end, we will be oper-
ating more stores in each of our formats
compared to the beginning of the year.
Another strategy to expand our reach
is through an arrangement that we
recently negotiated with a well-estab-
lished third party franchisee to open Foot
Locker franchises in several countries in
the Middle East, a region where we do not
currently operate stores. We are working
together with the franchisee towards a
goal of opening six new franchised stores
in 2006 and a total of 75 new stores in
this region over the next four years.
Finally, we continue to seek ways to
increase sales and profits by leveraging
our Footlocker.com/Eastbay infrastruc-
ture. During 2006, we plan to expand our
reach through our direct-to-customers
channels by developing a new Internet
website and catalog selling men's and
women's leather dress shoes.
Home Court Advantages
Today, Foot Locker, Inc. maintains a lead-
ership position in the worldwide special-
ty athletic footwear and apparel retail
industry with almost 4,000 stores in 20
countries. We also operate a highly-prof-
itable direct-to-customers business that
sells athletic footwear, apparel and
equipment through catalogs and the
Internet -- channels that complement our
retail stores. Our well-known brands, mar-
ket share position and diversification pro-
vide many competitive advantages that
benefit our Company today and provide
an edge as we strive to grow our Company
profitably and deliver greater value to our
shareholders.
Building a winning culture that has as
its core a passion for high performance is
of paramount importance to our
Company. Today, our associates are fully
engaged in our business, focused on their
key responsibilities and encouraged to
develop new ideas to benefit our organi-
zation. It is through the hard work of our
associates -- the Company's most impor-
tant asset -- that we have successfully
increased shareholder value over the
years.
Of course, our focus on strong per-
formance across all aspects of our busi-
ness also extends to our commitment to
good corporate citizenship. In particular,
we are very proud of the manner in which
our organization stepped up to the plate
this year to raise funds for several worthy
organizations, including the United Negro
College Fund, the United Way and the
American Cancer Society. Additionally,
Foot Locker, Inc. donated more than
80,000 pairs of athletic shoes to Save the
Children, primarily to provide aid to the
victims of the tsunami disaster in Asia.
Our associates worldwide also made gen-
erous contributions to assist their fellow
associates and families who were
adversely affected by hurricanes Katrina,
Rita and Wilma.
We believe that our Company also has
the distinct advantage of benefitting
from the strategic direction and counsel
of a Board of Directors comprising indi-
viduals with truly exceptional talents.
Their guidance over the past several years
has contributed significantly to our suc-
cess.
Finally, we would like to thank our
suppliers, landlords and other business
partners who assist us in providing excep-
tional goods and services to our valued
customers.
We are confident and optimistic
regarding the future of Foot Locker, Inc.
Several important growth opportunities
have been identified that, when imple-
mented, we believe will benefit both our
near term and longer term financial
results. Our organization is strong, our
financial position is solid, our infrastruc-
ture is well equipped, and we look for-
ward with great enthusiasm to our excit-
ing future and bright prospects.
Sincerely,
Matthew D. Serra
Chairman of the Board, President
and Chief Executive Officer
Looking to the future, we believe that we have many oppor-
tunities to accelerate our growth by expanding the reach of
our business into both new and existing markets.
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