Foot Locker 2009 Annual Report Download - page 4

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2
As this is the first letter that I am writing to you as
Foot Locker, Inc.’s Chief Executive Officer, I thought it
appropriate to share some of my initial thoughts about our
Company, review our 2009 accomplishments and discuss our
strategic priorities for the future.
I regard the opportunity to be Chairman of the Board,
President and CEO of Foot Locker, Inc., a leading retailer
of athletically inspired footwear and apparel in the global
marketplace, as an honor and a privilege. Our management
team is experienced and well qualified, and together we
have identified a series of strategic initiatives to leverage our
competitive strengths and drive our Company to reach new
heights in sales and profitability over the long term. We are
in the early stages of implementing this plan, and off to a
good start.
Since joining our Company in August 2009, I have been
very involved in the day-to-day operations of the business,
gaining an understanding of our strengths and weaknesses,
and working to position us for the future. I have visited
many of our stores in U.S. and international markets, as well
as most of our division offices and support facilities. It is
clear to me that our associates worldwide are fully engaged
in the operations of our business; take great pride
in working for our Company; and, above all,
possess a winning attitude that is vital to
being successful in the retail industry. So,
let me review what was accomplished
in the past year…and what we are
planning for the future.
2009 Scoreboard
Without a doubt, the difficult economic conditions in 2009
presented considerable challenges for most retailers. For
us, the financial results of our U.S. businesses reflect the
impact of weak consumer spending. At the same time,
our results from our international businesses were far more
encouraging, with strong year-over-year sales and profit
increases in some key markets in Europe and in the
Asia/Pacific region.
Reflecting these challenges, our worldwide sales for
2009 declined to $4.9 billion from $5.2 billion in 2008, with
our comparable-store sales declining 6.3 percent. The
Company’s net income, on an adjusted basis, was $0.54 per
diluted share for the current year versus $0.68 per diluted
share last year. A complete compilation and reconciliation
of our audited GAAP to non-GAAP adjusted results,
accompanies this letter in the Form 10-K.
Expecting that 2009 would be a year marked by a
weak consumer spending environment, we focused on
implementing strategies designed to protect our profitability,
remain financially strong and improve our competitive
position. As the year turned out, management’s approach
of running the business cautiously was beneficial
to the Company. Our cash flow generation
was significant; we ended 2009 in a strong
financial position and, we believe, improved our
competitive situation in the marketplace. Let me
highlight some of the proactive steps
we took in 2009:
Our Company is positioned well to capitalize on business opportunities in the years
ahead as we strive to increase shareholder value.
Letter to Shareholders