Foot Locker, Inc. reported sales for the 13-week period ended July 31, 2004 of $1.27 billion, versus $1.12 billion in the comparable period last year, an increase of 12.9%. For this same 13-week period, comparable store sales decreased 0.5%.
For the 26-week period ended July 31, 2004, sales increased 9.0% to $2,454 million, from $2,251 million in the Company's corresponding period last year. Comparable-store sales for the Company's first six months of its 2004 fiscal year decreased 0.1%.
Excluding the effect of foreign currency fluctuations, total sales for the 13-week and 26-week periods increased 11.2% and 6.6%, respectively.
“Our U.S. businesses were less promotional during the second quarter and generated a comparable-store sales increase similar to that produced during the first three months of the year,” stated Matthew D. Serra, Foot Locker, Inc.'s Chairman and Chief Executive Officer. “We are encouraged for the fall season given our improving sales trend during July, which benefited from higher average footwear selling prices than the same period last year. Comparable-store sales remained somewhat soft in our stores that operate in certain international markets.”
The Company's second quarter total sales increase reflects the 350-store Footaction chain that was acquired as in early May and the Foot Locker store expansion program in Europe. During the second quarter, the Footaction business was successfully intregrated into the Company's existing infrastructure and the acquired inventory was substantially liquidated.
Mr. Serra continued, “With the Footaction integration process essentially complete, including the costs associated with the repositioning of this business, we believe these stores are poised for a profitable fall season. We continue to expect second quarter fully diluted earnings per share from continuing operations, including the Footaction integration costs, to increase 10 to 20 percent.”
