Foot Locker 2013 Annual Report Download - page 5

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BUILDING ON OUR STRENGTHS
During the past few years, the team at Foot Locker, Inc. has
built strong momentum in our overall nancial and operational
performance. Our Company is the largest retailer of athletic-
ally inspired shoes and apparel in the world through our ten
distinct store and digital banners. We are a leading destination
in North America, Europe, and Australia for customers looking
for the best athletic footwear and apparel --- whether that
customer is the elite athlete on the court, track, or eld; the
fashion-oriented “sneakerhead;” someone who is on their feet
all day; a kid going to school; or anybody who wants to have
the most comfortable, stylish shoes on their feet. We are able
to connect with each of them and provide a great experience
and product.
To channel our strengths and capitalize on the many
opportunities we have in the athletic industry, we established
six key strategies in 2010 and updated them in 2012. Our
current strategies are to:
• create a clear customer focus, to drive performance
in our core athletic banners
• make our stores and internet sites more exciting,
relevant places to shop and buy
• deliver exceptional growth in high-potential business
segments
• aggressively pursue brand expansion
opportunities
• increase the productivity of
all of our assets
• build on our industry
leading retail team
The primary driver of our success --- success that can be
seen clearly in our record-setting 2013 nancial results ---
is the excellent execution at all levels of the many initiatives
supporting our strategies. We continued to make signicant
progress in 2013 towards all of our key nancial objectives, as
shown in the table below.
Original Current
5-Year Plan Long-Term
2009 Objective* 2013 Objective
Sales (billions) $4.9 $6.0 $6.5 $7.5
Sales per Gross Square Foot $333 $400 $460 $500
Adjusted EBIT Margin 2.8% 8.0% 10.4% 11.0%
Adjusted Net Income Margin 1.8% 5.0% 6.6% 7.0%
Return on Invested Capital 5.3% 10.0% 14.1% 14.0%
*Our original objectives were established in early 2010 and replaced by
the current long-term objectives in early 2012.
Most of the gures in 2013 represent record performances for
our Company, and I am pleased that this is the third consecutive
year in which I have been able to write that. We believe we have
built a solid, consistent business, and have developed a growing
number of strengths and opportunities upon which we can
continue to build as we pursue our vision --- to be the leading
global retailer of athletically inspired shoes and apparel.
I will outline many of these key strengths
in this letter, and through-out the
pages that follow.
4
LETTER TO SHAREHOLDERS
“The primary driver of our success ---
success that can be seen clearly in our record-
setting 2013 financial results --- is the excellent
execution of the many initiatives supporting our
strategies.”