UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 20, 2005
Foot Locker, Inc.
(Exact Name of Registrant as Specified in its Charter)
|
New York |
1-10299 |
13-3513936 |
|
(State or other Jurisdiction |
(Commission File Number) |
(I.R.S. Employer |
|
112 West 34th Street, New York, New York (Address of Principal Executive Offices) |
10120 (Zip Code) |
|
Registrant's telephone number, including area code: 212-720-3700 |
|
Former Name/Address |
_____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
|
Item 7.01. |
Regulation FD Disclosure |
Attached as Exhibit 99.1 is material that the Company intends to use at meetings with analysts over the next several months, beginning May 20, 2005.
|
Item 9.01. |
Financial Statements and Exhibits. |
|
(c) |
Exhibits |
|
99.1 |
Foot Locker, Inc. Slides. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
FOOT LOCKER, INC. (Registrant) |
|
Date: May 20, 2005 |
By: |
/s/ Peter D. Brown |
|
|
|
Vice President – Investor Relations and Treasurer |
Athletic Store Count / Sales Per Square Foot *
8.5% Near Term Goal
10.0% Longer Term Goal
EBITDA
Operating Profit Margin
CAGR = 21%
Income from continuing operations
before income taxes
Interest expense, net
Depreciation and amortization
Percent of Sales
Amount
CAGR = 62%
$ Millions
Goal = $350 / Sq Ft
ROE
Cash, Net of Debt
MARGINS
PRODUCTIVITY ENHANCEMENT
INCOME FROM CONTINUING OPERATIONS
FINANCIAL HIGHLIGHTS
16.8%
15.9%
15.4%
11.1%
10.0%
5.4%
1.2%
4.4%
3.6%
2.5%
2.5%
1.4%
0.3%
$209
$255
$162
$111
$107
$59
$14
7.2%
7.3%
6.0%
4.5%
4.2%
(1.8%)
(1.7%)
$494
$543
$425
$357
$352
$320
$172
FOOT LOCKER, INC.
7.8%
Excluding Footaction
Acquisition
* 1998 represents sales for existing formats.
* Cash, cash equivalents and short-term investments
** Cash, net of debt excludes the fair value of interest rate swaps
$ Millions
($ Millions)
KEY RATIOS
2004 Balance Sheet Initiatives
$150 Million Debt Converted to Equity
$47 Million Reduction of Income Tax Liabilities
$71 Million Reduction of Pension Liability
$200 Million Amended, Restated and Extended to 2009
$175 Million New 5 Year Term Loan
7% Direct-to-
Customers
5% Direct-to-
Customers
12%
Internation
al Stores
26%
Internation
al Stores
83% Domestic Stores
67% Domestic Stores
$3.6 Billion
1998
$5.4 Billion
2004
DISTRIBUTION CHANNELS
Athletic Sales
Pre-tax Income
($27)
$25
$40
$62
$86
$138
$152
International Growth
1998
1999
2000
2001
2002
2003
2004
4.8%
1998
1999
2000
2001
2002
2003
2004
6-Year
1998
2004
CAGR
Total Sales
$4,161
$5,355
4.3%
Athletic Sales *
$3,625
$5,355
6.7%
Gross Margin
27.2%
30.5%
SG&A Rate
25.5%
20.3%
Income Continuing Operations
$14
$255
62.3%
Diluted EPS
$0.10
$1.64
59.4%
1998
1999
2000
2001
2002
2003
2004
-574
-327
-204
-184
0
112
131
($700)
($600)
($500)
($400)
($300)
($200)
($100)
$0
$100
$200
1998
1999
2000
2001
2002
2003
2004
1998
1999
2000
2001
2002
2003
2004
Cash *
$193
$162
$109
$215
$357
$448
$492
Debt
(767)
(489)
(313)
(399)
(357)
(336)
(361)
Net **
($574)
($327)
($204)
($184)
$0
$112
$131
1998
1999
2000
2001
2002
2003
2004
Athletic Stores Sales
Per Avg. Gross Square Foot
$272
$282
$301
$306
$316
$335
$345
Operating Profit Margin
-1.7%
-1.8%
4.2%
4.5%
6.0%
7.2%
7.3%
Net Income Margin *
0.3%
1.4%
2.5%
2.5%
3.6%
4.4%
4.8%
Net Debt Capitalization Percent
67.6%
61.2%
60.9%
61.1%
58.6%
53.3%
50.4%
ROE
1.2%
5.4%
10.0%
11.1%
15.4%
16.8%
15.9%
Current Ratio
1.4
1.5
1.5
2.0
2.2
2.8
2.7
Fixed Charge Coverage
0.9
1.4
1.9
1.9
2.2
2.6
2.7
* Income from continuing operations as a percentage of sales
1998
1999
2000
2001
2002
2003
2004
1998
1999
2000
2001
2002
2003
2004
3830
3693
3582
3590
3625
3610
3967
272
282
301
306
316
335
345
1000
2000
3000
4000
1998
1999
2000
2001
2002
2003
2004
100
150
200
250
300
350
400
450
Athletic Store Count:
1998
1999
2000
2001
2002
2003
2004
U.S.
3,303
3,174
3,063
3,036
3,005
2,931
3,224
Europe
281
289
289
323
377
427
485
Canada
190
172
165
158
168
168
166
Asia/Pacific
56
58
65
73
75
84
92
Total
3,830
3,693
3,582
3,590
3,625
3,610
3,967
$446
$507
$597
$693
$870
$1,182
$1,374
($400)
$0
$400
$800
$1,200
$1,600
1998
1999
2000
2001
2002
2003
2004
($40)
$0
$40
$80
$120
$160
* Per average gross square foot; 1998 excludes disposed formats.
Increase Marquee Footwear Offerings
Higher Average Selling Prices
Optimize Footaction Contribution
$0.12+ per Share Accretion
Enhance Lady Foot Locker Turnaround
Profit Improvement Opportunity
Reduce Occupancy Expense Rate
50 Bps per Year
Improve Customer Service
Stock Locator Program
Enhance Gift Card Displays
New Loyalty Program
SALES & DIVISION PROFIT
FOOT LOCKER INTERNATIONAL
FOOTLOCKER.COM / EASTBAY
FOOT LOCKER, INC.
ENHANCED SHAREHOLDER VALUE
27.59
19.97
25.97
12.00
8.20
17.95
16.75
10.20
19.10
9.28
5.00
3.19
4.25
27.25
Share Price at Year End
Note: In 2005, FL stock reached a 10 year high.
STRATEGIC PRIORITIES
2005 KEY INTIATIVES
LONGER-TERM GROWTH STRATEGIES
Enhance Base Business
Seek Organic Store Growth
Pursue Strategic Acquisitions
Strengthen Financial Position
Return Cash to Shareholders
Productivity Enhancements
Achieve 10% Operating Margin Target
Exceed $350 Sales per Square Foot Goal
International Growth
Continue European Expansion
Pursue Asia / Pacific Opportunities
Explore Other New Regions
Direct-to-Customers
Internet Expansion
Third Party Relationships
Acquisitions
Pursue Opportunistically
166
Canada
Croatia
Swit
Finland
Norway
Sweden
1
Netherlands
35
U.K.
72
Czech Rep
France
79
Spain
48
Belgium/Lux 19
Turkey
Italy 120
Austria 5
Slovenia
Bosnia
Yugoslavia
Bulgaria
Romania
Poland
Slovakia
Hungary 1
Germany 85
Ireland
11
Portugal
4
Greece
82
Australia
10
New Zealand
4
Guam
Existing Markets
Potential Markets
2005 Market Entry
2004 Sales
$ Millions
$180
$217
$279
$326
$349
$366
$366
$0
$90
$180
$270
$360
$450
$0
$20
$40
$60
$80
1998
1999
2000
2001
2002
2003
2004
Sales
Internet
Catalog
$0
$5
$10
$15
$20
$25
$30
1998
1999
2000
2001
2002
2003
2004
DISCLOSURE ON FORWARD LOOKING STATEMENTS
Division
Profit
42%
58%
Denmark
5
This presentation contains forward-looking statements, which reflect management’s current views of future
events and financial performance. These forward-looking statements are based on many assumptions and
factors 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), unseasonable weather, risks associated with foreign global sourcing,
including political instability, changes in import regulations, disruptions to transportation services and
distribution, economic conditions worldwide, 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 plans effectively with regard to each of its
business units. 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.