• Net Income of $0.69 Per Share, Up 60 Percent Compared to Last Year
• Comparable-Store Sales Increased 10.2 Percent
• SG&A Rate Improved 210 Basis Points
NEW YORK, NY, November 16, 2012 – Foot Locker, Inc. (NYSE: FL), the New York-based specialty
athletic retailer, today reported financial results for its third quarter ended October 27, 2012.
Third Quarter Results
Net income for the Company’s third quarter ended October 27, 2012 was $106 million, or $0.69 per share,
compared with net income last year of $66 million, or $0.43 per share. Third quarter sales increased 9.3
percent, to $1,524 million this year, compared with sales of $1,394 million for the corresponding prior-year
period. Third quarter comparable-store sales increased 10.2 percent, which consisted of a 9.4 percent
increase in store sales and an 18.3 percent increase in direct-to-customer sales. Excluding the effect of
foreign currency fluctuations, total sales for the third quarter increased 11.0 percent.
Net income for the Company’s first nine months of the year increased 48.7 percent to $293 million, or $1.90
per share, compared with net income of $197 million, or $1.27 per share, for the corresponding period last
year. Year-to-date sales increased 8.4 percent, to $4,469 million, compared with sales of $4,121 million last
year. Year-to-date comparable-store sales increased 9.9 percent. Excluding the effect of foreign currency
fluctuations, total sales year-to-date increased 10.4 percent.
“Our team put together another outstanding quarter, delivering a double digit sales gain and controlling
expenses to drive our bottom line earnings to new heights,” said Ken C. Hicks, Chairman and Chief
Executive Officer. “The ongoing focus of all of our associates on the strategies and initiatives we updated at
the beginning of the year continues to enhance the productivity of our key assets. Inventory turns are
improving; sales per square foot are increasing; and by investing in our people and giving them the best
tools to succeed with the customer, our associates are becoming even more productive, too.”
Included in the Company’s third quarter and year-to-date results is a tax benefit of $9 million, or $0.06 per
share. This benefit is the result of a settlement of a foreign tax audit, resulting in a reduction of tax reserves
established in prior periods. On a non-GAAP basis, Foot Locker’s third quarter earnings were $0.63 per
share. A reconciliation of GAAP to non-GAAP results for the third quarter of 2012 is provided in the table
At October 27, 2012, the Company’s merchandise inventory was $1,240 million, 3.0 percent higher than at
the end of the third quarter last year. The Company’s cash and short-term investments totaled $853
million, while the debt on its balance sheet was $133 million. The Company’s total cash position, net of
debt, was $158 million higher than the same time last year.
During the third quarter of 2012, the Company repurchased approximately 841 thousand shares of its
common stock for $29.7 million. Year-to-date, the Company has repurchased just under 3 million shares of
its common stock for $94.3 million under the Company’s $400 million share repurchase program.
Store Base Update
During the first nine months of the year, the Company opened 70 new stores, remodeled/relocated 159
stores and closed 72 stores. At October 27, 2012, the Company operated 3,367 stores in 23 countries in
North America, Europe, Australia, and New Zealand. In addition, 40 franchised stores were operating in
the Middle East and South Korea.
The Company is hosting a live conference call at 9:00 a.m. (EST) today, November 16, 2012