New York City Chairman and CEO Ken C. Hicks of Foot Locker announced a new strategic plan on Tuesday, including a series of operating initiatives to grow its business and long-term financial objectives.
"The company has a strong financial position and many high potential opportunities to increase its sales and profits, both in U.S. and international markets," said Hicks. "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.”
Under the plan, the company said it 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 said it 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.
To measure, monitor and be held accountable for its progress toward that end, Foot Locker 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; a net income margin of 5%; a return on invested capital of 10%; and a higher turnover of 3.0 times
"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,” Hicks said. “We believe that they are realistic and attainable, but will require our team to stretch to achieve them."