1. 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

2. 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.

3. Financial Ratios
Profitability 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
.506
Working Capital (in millions USD) 1531 1727 1724 1760 321
Leverage Ratios
Debt-to-assets ratio .308 .294 .284 .302
.323
Long-term debt-to-capital ratio .060 .052 - - -
Debt-to equity ratio 4.454 4.164 3.970 4.331
4.786
Long-term debt-to-equity ratio 6.398 5.595 - - -
Times-interest-earned ratio 6.242 5.545 - -
8.563
Activity 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%

4. 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.