Foot Locker Q2 Sales Rise 3%, Comps Up 1.3%

Foot Locker, Inc. reported sales for the 13-week period ended July 30, 2005 of $1,306 million, versus $1,268 million in the comparable period last year, an increase of 3.0%. For this same 13-week period, comparable store sales increased 1.3%.

For the 26-week period ended July 30, 2005, sales increased 9.3% to $2,682 million, from $2,454 million in the company's corresponding period last year. Comparable-store sales for the company's first six months of its 2005 fiscal year increased 2.0%.

Excluding the effect of foreign currency fluctuations, total sales for the 13-week and 26-week periods increased 2.2% and 8.2%, respectively.

Second quarter comparable store sales reflected a mid-single digit increase at the company's combined U.S. businesses, led by a double-digit increase at Champs Sports. Comparable-store sales results at the company's international Foot Locker operations were mixed with the Canadian and Asia/Pacific stores posting very solid mid-single digit increases, which were more than offset by a high-single digit decline at the company's European stores.

“While our European business remains productive, generating a double digit profit margin, our recent financial results in this region were below our expectations and very disappointing,” stated Matthew D. Serra, Foot Locker, Inc.'s chairman and chief executive officer. “Second quarter profit at Foot Locker Europe declined from the comparable period last year, more than offsetting the combined profit increase generated by our other divisions. Therefore, we currently expect earnings per share for the second quarter to be in the range of 27 cents to 29 cents. Updated earnings per share guidance for the balance of 2005 will be provided on August 19, 2005 during our second quarter 2005 earnings conference call.”

Mr. Serra continued, “Our U.S. business, in contrast, has had improving sales and profit results. We continue to be encouraged with the building sales momentum at Footaction, whose results will be included in the company's comparable-store sales beginning in the third quarter of 2005.”