Foot Locker (FL)

Full Year Results

Net income for the full year was $1.60 per share, or $251 million, including a non-cash impairment charge of $0.08 per share, or $12 million, recorded in the second quarter of 2006 to write down long-lived assets at the Company’s European operation, pursuant to SFAS No. 144, and income from discontinued operations of $0.02 per share, or $3 million. In fiscal year 2005, the Company reported net income per share of $1.68 per share, or $264 million and included $0.01 per share, or $1 million, from discontinued operations. Income from continuing operations for the full year was $1.58 per share, or $247 million in 2006, versus $1.67 per share, or $263 million, last year.

Full year sales increased 1.7 percent, to $5,750 million, as compared with sales of $5,653 million last year, reflecting the benefit of the additional week this year, and negatively impacted by a comparable-store sales decrease of 1.2 percent.

Full Year Results

Full year net income was $1.68 per share, or $264 million, compared with $1.88 per share, or $293 million last year. Net income for 2005 includes $1 million, or $0.01 per share, from discontinued operations, and for 2004 net income includes $38 million, or $0.24 per share, from discontinued operations. Excluding the income from discontinued operations, the Company’s income from continuing operations in 2005 increased 1.8 percent to $1.67 per share, or $263 million, versus $1.64 per share, or $255 million last year. The $0.02 per share credit related to insurance recoveries recorded during the fourth quarter, as outlined above, essentially offset charges, net of credits, totaling $0.02 per share recorded during the Company’s third fiscal quarter related to these hurricanes, potential insolvency of one of the Company’s insurance administrators and the settlement of litigation proceedings.

Full year sales increased 5.6 percent to $5,653 million, compared with sales of $5,355 million last year. Comparable-store sales increased 2.7 percent.

“Our financial results in 2005 reflected solid sales and profit gains posted by our combined North American businesses, which were partially offset by declines in certain international markets,” stated Matthew D. Serra, Foot Locker, Inc.’s chairman and chief executive officer. “In total, we generated an 8.3 percent increase in pre-tax income and effectively continued to implement our strategic priorities. We are also encouraged that we were able to strengthen our financial position further, while also redeploying additional cash to benefit our shareholders.”

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Full year net income increased 35 percent, to $1.88 per share, or $293 million, compared with $1.39 per share, or $207 million last year. Results from discontinued operations reflect an income tax benefit of $38 million, or $0.24 per share, in 2004, versus a loss related to revisions in estimates to discontinued reserves of $1 million, or $0.01 per share, in 2003. Income from continuing operations increased 17 percent to $1.64 per share, or $255 million, versus $1.40 per share, or $209 million last year. Full year sales increased 12.1 percent to $5,355 million, compared with sales of $4,779 million last year. Comparable-store sales increased 0.9 percent.