March 6, 2012
Ken C. Hicks
, Chairman and Chief Executive Officer of Foot Locker, Inc. (NYSE: FL), the
-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."