Foot Locker Q3 Same-Store Sales Inch Up 1.2%

Foot Locker, Inc. reported sales for the 13-week period ended October 30, 2004 of $1,365 million, versus $1,194 million in the comparable period last year, an increase of 14.3%. For this same 13-week period, comparable store sales increased 1.2%.

For the 39-week period ended October 30, 2004, sales increased 10.9% to $3,820 million, from $3,445 million in the Company's corresponding period last year. Comparable-store sales for the Company's first nine months of its 2004 fiscal year increased 0.3%.

Excluding the effect of foreign currency fluctuations, total sales for the 13-week and 39-week periods increased 12.3% and 8.5%, respectively.

“We are encouraged that our third quarter comparable-store sales improved versus the results generated during the first six months of the year,” stated Matthew D. Serra, Foot Locker, Inc.'s Chairman and Chief Executive Officer. “This improving comparable-store sales trend was largely driven by increases at Champs Sports, Lady Foot Locker, and our international Foot Locker stores in Canada and Australia. We have estimated that the September 2004 hurricanes negatively impacted our third quarter comparable-store sales increase by approximately 0.6 percent, primarily as a result of disruptions to our operations in Florida and Puerto Rico where we have almost 300 stores. The Company's total sales increase reflects the 349-store Footaction chain that was acquired in May and the Foot Locker store expansion program in Europe, both of which continue to enhance our market share and profits.”

Mr. Serra continued, “Comparable-store sales were also somewhat tempered as part of our planned effort to reduce our overall promotional posture during the third quarter versus the first six months of this year. This strategy resulted in an improved year-to-date merchandise margin rate. On a quarter- over-quarter comparison versus 2003, we continued to reduce our SG&A expenses, as a percentage of sales, which offset a gross margin rate decline as compared to last year's strong performance. We remain on track to deliver a 10 to 15 percent increase in fully diluted earnings per share from continuing operations versus the third quarter of last year, which is within our previous guidance.”