Foot Locker 2014 Annual Report Download - page 37

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 and Sidestep.
The Direct-to-Customers segment includes Footlocker.com, Inc. and other affiliates, including Eastbay, Inc.,
and the direct-to-customer subsidiary of Runners Point Group, which sell to customers through their Internet
and mobile sites and catalogs.
The Foot Locker brand is one of the most widely recognized names in the markets in which the Company
operates, epitomizing premium 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-customer business. Through
various marketing channels, including broadcast, digital, print, and various sports sponsorships and events, the
Company 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 1,
2014 Opened Closed January 31, 2015 Relocations/ Remodels Selling Gross
Foot Locker US 1,044 11 40 1,015 94 2,494 4,298
Foot Locker Europe 604 13 14 603 40 846 1,839
Foot Locker Canada 128 — 2 126 31 270 422
Foot Locker Asia Pacific 92 3 4 91 4 125 204
Lady Foot Locker/SIX:02 257 8 52 213 51 299 501
Kids Foot Locker 336 28 7 357 25 529 912
Footaction 277 2 7 272 20 789 1,258
Champs Sports 542 11 6 547 50 1,913 2,927
Runners Point 115 5 4 116 4 143 244
Sidestep 78 5 — 83 — 75 129
Total 3,473 86 136 3,423 319 7,483 12,734
Athletic Stores
The Company operates 3,423 stores in the Athletic Stores segment. The following is a brief description of the
Athletic Stores segment’s operating businesses and their respective taglines:
Foot Locker — ‘‘Approved’’ — Foot Locker is a leading global athletic footwear and apparel retailer, which
caters to the sneaker enthusiast — If it’s at Foot Locker, it’s Approved. Its stores offer the latest in
athletically-inspired footwear and apparel, manufactured primarily by the leading athletic brands. Foot Locker
provides the best selection of premium products for a wide variety of activities, including basketball, running,
and training. Additionally, we operate 178 House of Hoops, primarily a shop-in-shop concept, which sells
premier basketball-inspired footwear and apparel. Foot Locker’s 1,835 stores are located in 23 countries
including 1,015 in the United States, Puerto Rico, U.S. Virgin Islands, and Guam, 126 in Canada, 603 in Europe,
and a combined 91 in Australia and New Zealand. The domestic stores have an average of 2,500 selling square
feet and the international stores have an average of 1,500 selling square feet.
Lady Foot Locker —‘‘The Place for Her’’ — Lady Foot Locker is a leading U.S. retailer of athletic footwear,
apparel, and accessories for active women. Its stores carry major athletic footwear, apparel, and accessories
brands designed for a variety of activities, including running, walking, training, and fitness. Lady Foot Locker
operates 198 stores that are located in the United States and Puerto Rico. These stores have an average of
1,400 selling square feet.
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