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About Foot Locker, Inc.

Foot Locker is a leading retailer of athletic footwear with chains in the US and more than 25 other countries. It has about 2,190 Foot Locker, Kids Foot Locker, and Lady Foot Locker stores in the US as well as in Canada, Europe, and the Asia-Pacific region. The company's other chains -- totaling nearly 940 stores -- include Champs Sports, Footaction (mostly located in the US) and Runners Point and Sidestep (mostly located in Europe). The primarily mall-based stores offer footwear, apparel, and accessories from leading global brands such as NIKE and Adidas as well as emerging brands. Foot Locker also sells via ecommerce sites, mobile devices, and catalogs. The US market accounts for some 70% of total revenue.

Operations

Foot Locker's stores account for about 85% of total sales. The company has more than 1,700 Foot Locker stores, nearly 90% of which are in the US and Europe. It also operates about 430 Kids Foot Locker and about 45 Lady Foot Locker locations as well as the Champs Sports (some 535), Footaction (about 245), Runners Point (about 80), and Sidestep (more than 75).

The remaining sales come through direct-to-customer channels such as ecommerce sites, mobile apps, and catalogs. It includes direct marketing business Eastbay.

Overall, more than 80% of the retailer's revenue comes from footwear sales. Foot Locker is highly dependent on NIKE, which supplies about 70% of all its merchandise.

Geographic Reach

New York-based Foot Locker has stores across the US, as well as in Canada and more than 25 countries in Europe and the Asia-Pacific region. It is heavily reliant on the mature US market, however, which accounts for about 70% of total sales.

The company's about 5 distribution centers are located in the US, Germany, and the Netherlands.

 

 

Sales and Marketing

Foot Locker sells primarily through its stores, but generates about 15% of revenue through ecommerce sites, mobile apps, and catalogs. Its websites are aligned with the brand names of its store banners (footlocker.com, ladyfootlocker.com, six02.com, kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, runnerspoint.com, and sidestep-shoes.com).

Eastbay is its direct marketing business, which offers footwear, apparel, equipment, and licensed merchandise to high school and other athletes in the US.

The company generally spends aboiut $180 million on advertising.

Financial Performance

Foot Locker's revenue has been growing over the past few years (up about 10% since 2015). Net income has been a little more sporadic. It fell significantly in 2017, but rebounded in the following years.

In 2019 the company reported revenue of $8 billion, up 1% from the prior year. Comparable store sales increased 2%, led by growth in the direct-to-customer channels as a result of an enhanced ecommerce customer experience and improved product assortments.

Net income that year dropped to $491 million compared to last year. This decrease reflected higher SG&A and impairment charges as compared to the prior year. Net income margin also decreased to 6% as compared with 6.8% in the prior year.

Cash at the end of 2019 was $942 million, a decrease of $39 million from the prior year. Cash from operations contributed $696 million to the coffers, while investing activities used $235 million, mainly for capital expenditures. Financing activities used another $493 million for dividends to stockholders and the purchase of treasury shares.

Strategy

As is the case across the entire retail industry, Foot Locker is embracing technology and innovation as keys to strengthening customer relationships. The retailer made minority investments of $50 million in 2019 as part of its broader strategic initiatives aimed at strengthening and diversifying its role within the sneaker community.

In January of 2019, the company unveiled its newest store concept, the Power Store. The Power Store offers full-family shopping while immersing local communities in sneaker culture; the stores feature custom art, city-centric products, and community-oriented events.

The company uses its omni-channel strategy, which markets to customers online and via mobile apps as well as through physical locations. Its sites offer some of the largest online product selections and provide a seamless link between e-commerce and physical stores. In 2020, the company launched its new membership program FLX which rewards its members for shopping and engaging across its brands including Eastbay, which the company operates.

Company Background

Woolworth, established in 1879 as a five-and-dime store, introduced athletic shoe chain Foot Locker in 1974. It later developed Lady Foot Locker (1982) and Kids Foot Locker (1987).

Foot Locker, Inc.

330 W 34th St
New York, NY 10001-2406
Phone: 1 (212) 720-3700

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: FL
Stock Exchange: , NYSE
Chairman, President and CEO: Richard A. Johnson
EVP and CFO: Lauren B. Peters
SVP and CIO: Pawan Verma
Employees (This Location): 527
Employees (All Locations): 50,999

Major Office Locations

New York, NY

Other Locations

Fairbanks, AK
Birmingham, AL
Chandler, AZ
Tempe, AZ
Arcadia, CA
Culver City, CA
Fairfield, CA
Los Angeles, CA
Moreno Valley, CA
Northridge, CA
Sacramento, CA
San Diego, CA
San Rafael, CA
Santa Monica, CA
Ventura, CA
West Covina, CA
Meriden, CT
Boca Raton, FL
Bradenton, FL
Plantation, FL
Tallahassee, FL
Atlanta, GA
Buford, GA
Macon, GA
Hilo, HI
Des Moines, IA
Sioux City, IA
Calumet City, IL
Lincolnwood, IL
Bowling Green, KY
Hammond, LA
Watertown, MA
Annapolis, MD
Hanover, MD
Nottingham, MD
Grandville, MI
Highland Park, MI
Charlotte, NC
Concord, NC
Durham, NC
Winston Salem, NC
Bismarck, ND
Moorestown, NJ
Short Hills, NJ
Vineland, NJ
Albuquerque, NM
Farmington, NM
Gallup, NM
Santa Fe, NM
Las Vegas, NV
Albany, NY
Astoria, NY
Glendale, NY
New Orleans, NY
New York, NY
Whitehall, NY
Cleveland, OH
Columbus, OH
Dublin, OH
Lima, OH
Strongsville, OH
Allentown, PA
Camp Hill, PA
Harrisburg, PA
Philadelphia, PA
Anderson, SC
Franklin, TN
Memphis, TN
Addison, TX
Amarillo, TX
Arlington, TX
Austin, TX
Baytown, TX
Eagle Pass, TX
Fort Worth, TX
Friendswood, TX
Frisco, TX
Harlingen, TX
Houston, TX
Humble, TX
Hurst, TX
Irving, TX
Katy, TX
Lubbock, TX
Odessa, TX
Plano, TX
San Angelo, TX
Tyler, TX
West Valley City, UT
Chesapeake, VA
Manassas, VA
Mc Lean, VA
Newport News, VA
Norfolk, VA
Sterling, VA
Federal Way, WA
Puyallup, WA
Wausau, WI
Abbotsford, Canada
Anjou, Canada
Banff, Canada
Barrie, Canada
Belleville, Canada
Brampton, Canada
Brandon, Canada
Brantford, Canada
Brockville, Canada
Burlington, Canada
Burnaby, Canada
Calgary, Canada
Chatham, Canada
Chicoutimi, Canada
Châteauguay, Canada
Concord, Canada
Coquitlam, Canada
Cornwall, Canada
Courtenay, Canada
Cranbrook, Canada
Côte Saint-Luc, Canada
Dartmouth, Canada
Dieppe, Canada
Edmonton, Canada
Etobicoke, Canada
Fort Mcmurray, Canada
Fredericton, Canada
Gatineau, Canada
Georgetown, Canada
Grande Prairie, Canada
Guelph, Canada
Halifax, Canada
Hamilton, Canada
Kamloops, Canada
Kelowna, Canada
Kingston, Canada
Kitchener, Canada
Langley, Canada
Lasalle, Canada
Lethbridge, Canada
Lloydminster, Canada
London, Canada
Longueuil, Canada
Markham, Canada
Mississauga, Canada
Montréal, Canada
Montreal, Canada
Mont-Royal, Canada
Moose Jaw, Canada
Nanaimo, Canada
Nepean, Canada
New Glasgow, Canada
Newmarket, Canada
North Bay, Canada
North York, Canada
Oakville, Canada
Orillia, Canada
Orleans, Canada
Oshawa, Canada
Ottawa, Canada
Owen Sound, Canada
Peterborough, Canada
Pickering, Canada
Pointe-Claire, Canada
Prince Albert, Canada
Prince George, Canada
Québec, Canada
Quebec, Canada
Regina, Canada
Richmond, Canada
Richmond Hill, Canada
Saint-Bruno, Canada
Saint John, Canada
Saint-Jérôme, Canada
Saint-Laurent, Canada
Sarnia, Canada
Saskatoon, Canada
Sault Ste. Marie, Canada
Scarborough, Canada
St. Albert, Canada
St Catharines, Canada
St. John'S, Canada
Sudbury, Canada
Surrey, Canada
Sydney, Canada
Thornhill, Canada
Thunder Bay, Canada
Toronto, Canada
Trois-Rivières, Canada
Valleyview, Canada
Vancouver, Canada
Victoria, Canada
Waterloo, Canada
West Vancouver, Canada
Whistler, Canada
Windsor, Canada
Winnipeg, Canada
Antwerpen, Belgium
Brussel, Belgium
Bruxelles, Belgium
Charleroi, Belgium
Kortrijk, Belgium
Liège, Belgium
Nivelles, Belgium
Oostende, Belgium
Luxembourg, Luxembourg