17 Mar Foot Locker Shooting for $10 Billion in Sales by 2020
Foot Locker Inc. is targeting sales of $10 billion and sales per gross square foot of $600 by 2020, according to new financial targets laid out by the company Monday, March 16.
The specialty retailer released its updated strategic goals and significantly higher long-range financial objectives for the 2015 to 2020 time frame at an investor meeting Monday, March 16.
The new financial targets include :
- Sales of $10 billion
- Sales per Gross Square Foot of $600
- EBIT Margin of 12.5 percent
- Net Income Margin of 8.5 percent
- Return on Invested Capital of 17 percent
- Inventory Turnover of 3+ times
Foot Locker’s updated strategic priorities are to:
- Drive performance in the Core Business with compelling customer engagement
- Expand our leading position in the Kids’ business
- Aggressively pursue European expansion opportunities
- Build our Apparel penetration and profitability
- Build a more powerful Digital business with customer-focused channel connectivity
- Deliver exceptional growth in our Women’s business
- Build on our industry-leading team by embracing the power of our People
“We have been intently focused on executing our strategies for several years now,” said Foot Locker President and Chief Executive Officer Richard Johnson of long term goals Foot Locker set in 2010 and adjusted in 2012. “Four consecutive years of record-breaking financial results, including the very strong 2014 results that we announced on March 6, have reinforced our conviction that these are fundamentally the right strategies on which the high-performing team at Foot Locker Inc. should remain focused. We have achieved three of our most recent long-range objectives and have moved closer on all the others. As a consequence, our senior management team has recently revised the strategic framework within which to organize our growth initiatives and pursue our business priorities, and we have also raised the bar again on our long-term financial objectives.
“I want to extend my sincere thanks and appreciation to all of our associates around the globe for their exceptional dedication and excellent execution of our strategies, in the process driving our financial results to new heights over the last several years,” Johnson continued. “Setting new targets is easy. Reaching those new targets is not. Achieving even stronger levels of operational and financial performance will only be possible through the very diligent work of our outstanding team of associates, and the new framework allows us to focus even more clearly on the key initiatives that we believe will enable us to achieve our vision – to be the leading global retailer of athletically inspired shoes and apparel.”
As of Jan. 31, 2015, Foot Locker operated 3,423 stores in 23 countries in North America, Europe, Australia, and New Zealand. Through its Foot Locker, Champs Sports, Kids Foot Locker, Footaction, Lady Foot Locker, SIX:02, Runners Point, and Sidestep retail stores, as well as its direct-to-customer channels, including footlocker.com, Eastbay.com, champs.com, and six02.com, Foot Locker is a leading global retailer of athletic footwear and apparel.