Foot Locker 2006 Annual Report Download - page 23

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7
Item 6. Selected Financial Data
Selected financial data is included as the “Five Year Summary of Selected Financial Data” footnote in “Item 8.
Consolidated Financial Statements and Supplementary Data.”
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Business Overview
Foot Locker, Inc., through its subsidiaries, operates in two reportable segments — Athletic Stores and Direct-to-
Customers. The Athletic Stores segment is one of the largest athletic footwear and apparel retailers in the world, whose
formats include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, and Footaction (beginning May 2004).
The Direct-to-Customers segment reflects Footlocker.com, Inc., which sells, through its affiliates, including Eastbay,
Inc., to customers through catalogs and Internet websites.
The Foot Locker brand is one of the most widely recognized names in the market segments in which the Company
operates, epitomizing high quality for the active lifestyle customer. This brand equity has aided the Company’s ability
to successfully develop and increase its portfolio of complementary retail store formats, specifically Lady Foot Locker
and Kids Foot Locker, as well as Footlocker.com, Inc., its direct-to-customers business. Through various marketing
channels, including television campaigns and sponsorships of various sporting events, Foot Locker, Inc. reinforces its
image with a consistent message; namely, that it is the destination store for athletic footwear and apparel with a wide
selection of merchandise in a full-service environment.
Athletic Stores
The Company operates 3,942 stores in the Athletic Stores segment. The following is a brief description of the
Athletic Stores segment’s operating businesses:
Foot Locker — Foot Locker is a leading athletic footwear and apparel retailer. Its stores offer the latest in athletic-
inspired performance products, manufactured primarily by the leading athletic brands. Foot Locker offers products
for a wide variety of activities including running, basketball, hiking, tennis, aerobics, fitness, baseball, football, and
soccer. Its 2,101 stores are located in 20 countries including 1,368 in the United States, Puerto Rico, the U. S. Virgin
Islands, and Guam, 132 in Canada, 509 in Europe and a combined 92 in Australia and New Zealand. The domestic stores
have an average of 2,100 selling square feet and the international stores have an average of 1,500 selling square feet.
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 576 stores are located throughout the
United States, Canada, and the U. S. Virgin Islands. The Champs Sports stores have an average of 3,700 selling square
feet.
Footaction — Footaction is a national athletic footwear and apparel retailer. The primary customers are young
urban males that seek street-inspired fashion styles. Its 373 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 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 557
stores are located in the United States, Puerto Rico, the U. S. Virgin Islands, and Guam 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 children. Its stores feature an environment geared to appeal
to both parents and children. Its 335 stores are located in the United States, Puerto Rico, and the U.S. Virgin Islands
and have an average of 1,400 selling square feet.