Foot Locker Inc. announced goals to reach annual sales of $6 billion and net income margin of 5% over the next five years. At an analyst meeting, Ken C. Hicks, chairman and CEO of Foot Locker, Inc., announced a new strategic plan, including a series of operating initiatives to grow its business, and long-term financial objectives.

The key strategic priorities are:

Be the Power Merchandiser of athletic shoes and apparel with Clearly Defined Brand Banners
Develop a compelling Apparel assortment
Make our stores and internet sites Exciting Places to shop and buy
Aggressively pursue Growth Opportunities
Increase the Productivity of all of our assets
Build on our Industry Leading Retail Team
Hicks, who joined Foot Locker, Inc. in August 2009 from J.C. Penney, said "Foot Locker, Inc. is a recognized leader in specialty athletic retailing, with a portfolio of well-known brands and banners. The company has a strong financial position and many high potential opportunities to increase its sales and profits, both in United States and international markets. Our senior management team undertook a process over the past several months to thoroughly understand our position in the marketplace today and to develop strategic priorities for the future.   In doing this, we established a clear strategic vision: to be the leading global retailer of athletically inspired shoes and apparel." 

Under the plan announced today, the company will focus its efforts in the near term on achieving a higher level of sales and profits from its existing businesses. Over the longer term, Foot Locker, Inc. will pursue strategies to further its profitable growth by strengthening and expanding its brands and assortments to a more-diverse customer base, growing its business internationally, and by pursuing new business opportunities, including potential acquisitions, which are consistent with its strategic vision.

The company said its strategic priorities were developed with an aim to maximize shareholder value. To measure, monitor and be held accountable for its progress toward that end, Foot Locker, Inc. established the following set of financial objectives that it will look to achieve over the next five years.

-Sales of $6.0 billion
-Sales per gross square foot of $400
-EBIT margin of 8 percent
-Net Income margin of 5 percent
-Return on Invested Capital of 10 percent
-Inventory Turnover of 3.0 times

Hicks concluded, "The achievement of these financial objectives will require us to reach beyond what the Company achieved during its most productive years of the past decade.  We believe that they are realistic and attainable, but will require our team to "stretch" to achieve them."