On the Right Foot

Foot Locker Inc. (New York) reported an increase in adjusted net income of 14 percent for the second quarter ended Aug. 3, 2002. Sales increased 5.1 percent and same-store sales were up 0.9 percent.

“We successfully grew our sales and earnings, generated positive cash flow and strengthened our balance sheet, in spite of the continuing weakness in consumer spending,” said president and ceo Matthew Serra. “We are well-positioned to continue to achieve improved results.”

During the second quarter, the retailer formerly known as Venator Group (and before that as Woolworth Corp.) opened 41 stores, remodeled/relocated 57 stores and closed 23 stores. For the full year, it expects to open approximately 170 new stores, remodel or relocate over 200 existing stores and close approximately 100 under-performing stores. Overall, Foot Locker expects its total store count to increase by approximately 2 percent for the total year. At the end of the second quarter, it operated 3600 stores in 14 countries in North America, Europe and Australia.

“The challenging economic environment in the United States led to a somewhat softening sales trend in July which has continued into the first three weeks of August,” Serra said. “We have confidence, however, that the recent sales trend will reverse in September, as year-over-year comparisons become far more favorable. The percentage of our product offerings in the higher-priced marquee footwear category is consistent with historical levels and well positioned for the fall season.”

Foot Locker's nameplates in its three divisions include Foot Locker U.S. (1477 stores), Lady Foot Locker (614 stores), Kids Foot Locker (384 stores) and Champs Sports (577) and Foot Locker Intl. (548 stores).