Mission Statement

To be the leading global retailer of athletically inspired shoes and apparel.

Richard A. Johnson

CEO, President, Director, COO

Age: 58

Education: University of Wisconsin, Eau Claire

Prev: EVP, Director of H&R Block

Lauren Peters Pawan Verma

CFO, Vice President CIO, Senior VP

Age: 54 Age: 38

Education: N/A Education: Dr. Hari Singh Gour

Prev: Senior VP, Strategic Planning University. MBA Kent State

SWOT ANALYSIS

Potential Strength• Strong Management Team.• Brand(retailer) Recognition. • Strong Relationship with Nike, Inc.• Global Expansion.• Product information based on technology• Strong Website (e-commerce)• Variety of sport apparel brands.• Consumer Loyalty.

Potential Weaknesses• Poor R&D.• High Price.• Overly Dependent on Nike Inc.• Strong Dependent on Malls• Less to no Store Brand Products• Poor Advertising.

Potential Market Opportunity• Target all ages.• Endorsement.• New Product Offering.• Expand Internationally (Africa).• Expansion of Product Line.• Acquisition.• Innovation.

Potential Threats• High Product Substitutes.• High Market Entry• Constant Increase in Competition.• Wal-Mart Stores Inc.• Continuous Increase in Fake Products.

Financial RatiosProfitability Ratios 2012 2013 2014 2015 2016- 01

Gross Profit Margin % - 31.9% 32.9% 32.7% 33.1% 33.7%Operating Profit Margin % - 7.58% 7.69% 7.74% 7.81% 7.89%

Net Profit Margin - 4.9% 6.4% 8.1% 7.2% 7.2%

Return on total assets (annualized) % 9.11% 11.7% 15.1% 14.5% 14.3%

Return on stockholders (annualized) % 13.1% 16.7% 21.1% 20.8% 21.1%

EPS-Diluted- 1.80 2.58 2.85 3.56 3.84

Liquidity Ratios

Current ratio** 3.793 3.715 3.753 3.528 3.722

Quick ratio .485 .406 .481 .491 .506Working Capital (in millions USD) 1531 1727 1724 1760 321

Leverage Ratios

Debt-to-assets ratio .308 .294 .284 .302 .323Long-term debt-to-capital ratio .060 .052 - - -

Debt-to equity ratio 4.454 4.164 3.970 4.331 4.786Long-term debt-to-equity ratio 6.398 5.595 - - -

Times-interest-earned ratio 6.242 5.545 - - 8.563Activity Ratios

Days of inventory 10.19 6.89 6.84 6.38 6.32

Inventory turnover 35.79 35.54 35.83 38.21 38.18

Average collection period 32.455 40.148 55.549 40.323 46.782

Other Important Financial Measures

Dividend yield on common stock 2.1% 2.4% 1.7% 1.5% 1.8%

P/E ratio (quarterly figures annualized) 13.15 15.12 16.48 17.69 16.14

Dividend payout ratio 37% 28% 28% 25% 26%

Strategic Recommendations

• Foot Locker should focused on meeting their short-term liability in order or maintain sales, and should focused on collecting receivable quick enough.

• Foot Locker should think about having a brand of their own in order to increase or grow their sales.

• Foot Locker should maintain the strong business relationship they have with Nike, Inc.