Foot Locker (FL)

Year-to-Date Results

Net income for the Company’s first six months of the year was $21 million, or $0.13 per share, and includes store closing expenses of $3 million, after-tax, or $0.02 per share, and a non-cash impairment charge of $15 million, after-tax, or $0.10 per share. For comparison purposes, year-to-date net income in 2008, before the store closing expenses and impairment charge, was $39 million, or $0.25 per share. For the first six months of 2007, the Company had a net loss of $1 million, or $0.01 per share.

Year-to-date sales increased 0.5 percent to $2,611 million compared with sales of $2,599 million last year. Comparable-store sales decreased 1.7 percent.

Year-to-Date Results

For the first nine months of the year, the Company reported a net loss of $34 million, or $0.22 per share, compared with net income of $138 million, or $0.88 per share, last year. This year’s results included a non-cash impairment charge pursuant to SFAS No. 144 and expenses associated with closing unproductive stores, totaling $66 million, after tax, or $0.43 per share. Last year’s results included an impairment charge pursuant to SFAS No. 144 of $12 million, after tax, or $0.08 per share. Year-to-date net income, before the non-cash impairment charges in 2006 and 2007, and the expenses of closing unproductive stores in 2007, was $32 million, or $0.21 per share this year, versus $150 million, or $0.96 per share, last year.

Year-to-date sales decreased 3.5 percent to $3,955 million compared with sales of $4,098 million last year. Comparable-store sales decreased 5.8 percent.

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Year-to-Date Results

Year-to-date net income was $0.47 per share, or $73 million, compared to $0.65 per share, or $102 million last year. This year’s income before the non-cash charge recorded in the second quarter was $0.55 per share, or $85 million. Year-to-date sales decreased 0.5 percent to $2,668 million compared with sales of $2,681 million last year. Comparable-store sales decreased 0.4 percent.

Mr. Serra continued, “Given the continuing challenging athletic retail environment in Europe and recent softening sales trends in U.S. markets, we believe it is prudent to take a cautious stand on the outlook for the balance of the year. As a result, we now see earnings per share from continuing operations for the full year of 2006 to be in the range of $1.52 to $1.62 before the non-cash charge ($1.44 to $1.54 after the non-cash charge).”

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Foot Locker, Inc. 112 West 34^th Street, New York, NY 10120

Year-to-date net income was $1.07 per share, or $168 million, compared with $1.31 per share, or $204 million last year. Income from continuing operations in the year-to-date period was $1.06 per share, or $167 million, versus $1.07 per share, or $166 million last year. Results from discontinued operations reflected the $0.01 per share, or $1 million income, outlined above in the third quarter of 2005 versus an income tax benefit of $0.24 per share, or $38 million, included in last year’s results.

Year-to-date sales increased 7.0 percent to $4,089 million compared with sales of $3,820 million last year. Comparable-store sales increased 2.2 percent.

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Year-to-date net income decreased to $0.65 per share, or $102 million, compared with $0.84 per share, or $130 million last year. Income from continuing operations increased 8.3 percent, to $0.65 per share, or $102 million, versus $0.60 per share, or $92 million last year. Year-to-date sales increased 9.3 percent to $2,681 million compared with sales of $2,454 million last year. Comparable-store sales increased 2.0 percent.

“Given the recent challenges in our European business, we have revised our outlook for the balance of the year. We currently expect that our earnings per share from continuing operations to increase 2 to 12 percent during our third and fourth quarters of 2005 as compared with the corresponding periods of the prior year. We believe it is prudent to maintain this outlook for the balance of this year until we see signs of a consistent improvement in our business trends in Europe.”

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