Foot Locker 2013 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2013 Foot Locker annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

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, with formats that include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction,
SIX:02, as well as the retail stores of Runners Point Group, including Runners Point, Sidestep, and Run
2
, which
was acquired during the second quarter of 2013. The Direct-to-Customers segment includes Footlocker.com,
Inc. and other affiliates, including Eastbay, Inc., CCS, and Tredex, the direct-to-customer subsidiary of Runners
Point Group, which sell to customers through their Internet websites, mobile devices, and catalogs.
The Foot Locker brand is one of the most widely recognized names in the markets 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, such as Lady
Foot Locker, and Kids Foot Locker, as well as Footlocker.com, its direct-to-customers business. Through various
marketing channels, including broadcast, digital, print, and various sports sponsorships and events, the Com-
pany reinforces its image with a consistent message-namely, that it is the destination for athletically inspired
shoes and apparel with a wide selection of merchandise in a full-service environment.
Store Profile
Square Footage
(in thousands)
February 2,
2013 Opened Closed February 1,
2014 Relocations/
Remodels Selling Gross
Foot Locker US 1,072 7 35 1,044 153 2,492 4,301
Foot Locker Europe 590 26 12 604 23 836 1,815
Foot Locker Canada 129 — 1 128 15 270 423
Foot Locker Asia Pacific 92 3 3 92 9 126 205
Lady Foot Locker 303 8 54 257 3 351 592
Kids Foot Locker 305 31 — 336 24 477 830
Footaction 283 1 7 277 24 811 1,287
Champs Sports 539 6 3 542 69 1,894 2,886
CCS
(1)
22 — 22 —— ——
Runners Point Group
(2)
— 196 3 193 — 214 366
Total 3,335 278 140 3,473 320 7,471 12,705
(1) During the second quarter of 2013, the Company closed all CCS store locations. The CCS brand is operated solely as an e-commerce
business.
(2) The Company acquired 194 existing Runners Point Group stores in July 2013; subsequently, the Company opened 2 additional stores.
Athletic Stores
The Company operates 3,473 stores in the Athletic Stores segment. The following is a brief description of the
Athletic Stores segment’s operating businesses:
Foot Locker — ‘‘Sneaker Central’’ — Foot Locker is a leading global athletic footwear and apparel retailer. Its
stores offer the latest in athletically-inspired performance products, manufactured primarily by the leading
athletic brands. Foot Locker offers products for a wide variety of activities including basketball, running, and
training. Additionally, we operate 127 House of Hoops, primarily a shop-in-shop concept, which sells premier
basketball inspired products. Foot Locker’s 1,868 stores are located in 23 countries including 1,044 in the United
States, Puerto Rico, U.S. Virgin Islands, and Guam, 128 in Canada, 604 in Europe, and a combined 92 in Australia
and New Zealand. The domestic stores have an average of 2,400 selling square feet and the international stores
have an average of 1,500 selling square feet.
14