Foot Locker, Inc. Announces Updated Strategic Plan and Elevated Long-Term Financial Objectives
NEW YORK, March 6, 2012 /PRNewswire/ — Ken C. Hicks, Chairman and Chief Executive Officer of Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, and other senior members of the management team today announced an updated strategic plan and set of operating initiatives intended to further elevate the Company’s long-term financial performance for the period 2012 through 2016. The announcement came during an investor meeting held this morning.
The Company initially announced a new set of strategies and long-range financial objectives for Foot Locker, Inc. almost exactly two years ago. “The strategies our team identified and began implementing two years ago have elevated our financial and operational performance, and this was evident in the strong 2011 results we announced last week,” Mr. Hicks said. “Given that we are only two years along in a five-year plan, we have more progress to make on the current initiatives we established to achieve our vision of being the leading global retailer of athletically inspired footwear and apparel. However, because we have already achieved several of our initial financial goals, and because we have identified significant new opportunities that we believe can drive our business to even higher levels of performance, our team has updated our strategic priorities and actions, as well as our long-term financial objectives.”
Specifically, the Company’s new strategic priorities are:
- Create a clear customer focus to drive performance in its core athletic banners
- Make its 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 its assets
- Build on its Industry Leading Retail Team
The Company also substantially raised the financial objectives it expects to achieve over the next five years:
- Sales of $7.5 billion
- Sales per Gross Square Foot of $500
- EBIT Margin of 11 percent
- Net Income Margin of 7 percent
- Return on Invested Capital of 14 percent
- Inventory Turnover of 3+ times
Mr. Hicks concluded, “The entire team at Foot Locker, Inc. deserves a tremendous amount of credit for all they have accomplished in such a short amount of time. One of the foremost strengths of our team, however, is its clear focus on the future, and meeting these new financial objectives will require us to reach well beyond what the Company has ever achieved as Foot Locker, Inc. Given the strength of the Company and the opportunities we see ahead of us, we believe we are well-positioned to succeed.”
The meeting was webcast live this morning. A webcast replay will be available until 5pm ET on Friday, March 30, 2012 from the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com.
Foot Locker, Inc. is a specialty athletic retailer that operates almost 3,400 stores in 23 countries in North America, Europe and Australia. Through its Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction and Champs Sports stores, as well as its direct-to-customers channel Footlocker.com/Eastbay/CCS, the Company is the leading provider of athletic footwear and apparel.
Disclosure Regarding Forward-Looking Statements
This report contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, dividend payments, stock repurchases, growth of the Company’s business and operations, including future cash flows, revenues, and earnings, and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors which are detailed in the Company’s filings with the Securities and Exchange Commission, including the effects of currency fluctuations, customer demand, fashion trends, competitive market forces, uncertainties related to the effect of competitive products and pricing, customer acceptance of the Company’s merchandise mix and retail locations, the Company’s reliance on a few key vendors for a majority of its merchandise purchases (including a significant portion from one key vendor), pandemics and similar major health concerns, unseasonable weather, further deterioration of global financial markets, economic conditions worldwide, further deterioration of business and economic conditions, any changes in business, political and economic conditions due to the threat of future terrorist activities in the United States or in other parts of the world and related U.S. military action overseas, the ability of the Company to execute its business and strategic plans effectively with regard to each of its business units, and risks associated with foreign global sourcing, including political instability, changes in import regulations, and disruptions to transportation services and distribution. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE Foot Locker, Inc.