Exhibit 99
N E W S R E L E A S E
CONTACT: Peter D. Brown
Vice President, Investor
Relations and
Corporate Development
Venator Group, Inc.
(212) 720-4254
VENATOR GROUP REPORTS FIRST QUARTER RESULTS
-Adjusted earnings per share increased to $0.24 from $0.20 last year-
- Adjusted operating profit increases 20% -
NEW YORK, NY, May 17, 2001 - Venator Group, Inc. (NYSE: Z), the New
York-based specialty athletic retailer, today reported financial results
for its first quarter ended May 5, 2001.
Adjusted net income from operations for the first quarter was $34 million,
or $0.24 per share. This compares with $27 million, or $0.20 per share,
from adjusted operations for the first quarter last year, which included
after-tax real estate gains and other income of $6 million or $0.04 per
share.
Adjusted operating profit for the first quarter of 2001 increased 20
percent to $77 million from $64 million for the first quarter of 2000.
Sales from adjusted operations for the quarter were $1,055 million compared
with $1,016 million in the year-earlier period, which reflects a
comparable-store sales increase of 4.8 percent.
"We are pleased with our first quarter operating results, as we continued
to benefit from increased sales, an improved gross margin rate and a lower
expense rate," stated Matthew D. Serra, Venator Group's President and Chief
Executive Officer. "These improved operating efficiencies have allowed us
to produce strong flow-through to operating profits from increased sales."
Mr. Serra continued, "We also made significant progress in the first
quarter of 2001 implementing key strategic objectives. We believe that we
are well positioned to generate further profitable sales growth. At this
time, we are comfortable that we can achieve adjusted earnings per share in
the second quarter 2001 between $0.12 and $0.14 per share, and for the full
year 2001 between $0.90 and $0.94 per share."
At May 5, 2001 the Company operated 3,559 athletic stores in 14 countries
in North America, Europe and Australia. The Company opened 11 stores and
remodeled/relocated 28 stores during the quarter. Additionally, the Company
closed 34 stores.
The Company is hosting a live conference call at 10:00 am (ET) on Thursday,
May 17, 2001 during which senior management of the Company will discuss the
Company's performance in the quarter, and provide guidance with regard to
its earnings outlook for the second quarter and full year 2001. This
conference call may be accessed live from the Investor Relations section of
the Venator Group website at http://www.venatorgroup.com. The webcast
conference call will be available for replay until 5:00 pm on Tuesday, May
22, 2001.
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Results are presented on an adjusted basis to facilitate comparison.
Adjusted comparisons are from continuing operations and exclude the
operations and disposition of non-core businesses noted below and the
operations of the accelerated store closings for all periods presented. The
reported results for all operations are attached to this press release.
Businesses disposed or held for disposal: The San Francisco Music Box
Company, Foot Locker Outlets, Going To The Game, Randy River, Foot Locker
Japan and Burger King franchises.
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements, which reflect
management's current views of future events and financial performance.
These forward-looking statements are based on many assumptions and factors
detailed in the Company's filings with the Securities and Exchange
Commission, including the effects of currency fluctuations, customer
demand, fashion trends, competitive market forces, uncertainties
related to the effects of competitive products and pricing, customer
acceptance of the Company's merchandise mix and retail locations, economic
conditions worldwide, the ability of the Company to execute its business
plan effectively with regard to each of its operating units, and the
ability of the Company to implement, in a timely manner, the programs and
actions related to the euro issue. Any changes in such assumptions or
factors could produce significantly different results. The Company
undertakes no obligation to update forward-looking statements, whether as a
result of new information, future events, or otherwise.
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VENATOR GROUP, INC.
Consolidated Statements of Operations
(unaudited)
Periods ended May 5, 2001 and April 29, 2000
(In millions, except per share amounts)
The following are adjusted results:
------------------------------------
First Quarter
------------------------------------
Adjusted Adjusted
2001 2000
------------------------------------
Sales $1,055 $1,016
Cost of sales 735 712
Selling, general and administrative 222 224
expenses
Depreciation and amortization 38 37
Interest expense, net 4 8
Other income -- (10)
------------------------------------
999 971
------------------------------------
Income before income taxes 56 45
Income tax expense 22 18
------------------------------------
Net income $34 $27
====================================
Diluted earnings per share $0.24 $0.20
Weighted-average diluted shares outstanding 139.7 138.5
------------------------------------
The following are reported results:
First Quarter
------------------------------------
Reported Reported
2001 2000
------------------------------------
Sales $1,072 $1,044
Cost of sales 746 733
Selling, general and administrative 231 238
expenses
Depreciation and amortization 38 37
Interest expense, net 4 8
Other income -- (10)
-------------------------------------
1,019 1,006
-------------------------------------
Income from continuing operations before income 53 38
taxes
Income tax expense 21 15
-------------------------------------
Income from continuing operations 32 23
(Loss) from discontinued operations, net of income -- (9)
tax
Income on disposal of discontinued operations, net
of income tax 5 --
Cumulative effect of accounting change, net of -- (1)
income tax
-------------------------------------
Net income $37 $13
=====================================
Diluted earnings per share:
Income from continuing operations $0.23 $0.17
Income/(Loss) from discontinued operations
0.04 (0.06)
Cumulative effect of accounting change -- (0.01)
-------------------------------------
Net income $0.27 $0.10
=====================================
Weighted-average diluted shares outstanding 139.7 138.5
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VENATOR GROUP, INC.
Supplemental Information
(unaudited)
Periods ended May 5, 2001 and April 29, 2000
(In millions)
The following are adjusted results:
------------------------------------
First Quarter
------------------------------------
Adjusted Adjusted
2001 2000
------------------------------------
Sales by Segment:
Global Athletic Group:
Retail Stores $977 $952
Direct to Customers 78 64
------------------------------------
Total $1,055 $1,016
====================================
Operating Results by Segment:
Global Athletic Group:
Retail Stores $73 $67
Direct to Customers 4 (3)
------------------------------------
Total $77 $64
====================================
The following are reported results:
First Quarter
----------------------------------
Reported Reported
2001 2000
-----------------------------------
Sales by Segment:
Global Athletic Group:
Retail Stores $977 $962
Direct to Customers 78 64
-----------------------------------
1,055 1,026
Other 17 18
-----------------------------------
Total $1,072 $1,044
===================================
Operating Results by Segment:
Global Athletic Group:
Retail Stores $73 $64
Direct to Customers 4 (3)
-----------------------------------
77 61
Other (3) (9)
-----------------------------------
Total $74 $52
===================================
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VENATOR GROUP, INC.
Store and Estimated Square Footage - As Adjusted
(unaudited)
(Square footage in thousands)
------------------------------------------------------------
May 5, February 3, January 29,
2001 2001 2000
---------------- ----------------- ------------------
Foot Locker U.S.
Number of stores 1,444 1,453 1,469
Gross square footage 5,902 5,926 5,605
Selling square footage 3,352 3,372 3,419
Lady Foot Locker
Number of stores 652 662 656
Gross square footage 1,449 1,463 1,412
Selling square footage 829 839 820
Kids Foot Locker
Number of stores 395 398 397
Gross square footage 953 972 942
Selling square footage 571 574 570
Champs Sports
Number of stores 579 586 596
Gross square footage 3,331 3,370 3,404
Selling square footage 2,335 2,373 2,387
Foot Locker International
Number of stores 489 483 477
Gross square footage 1,366 1,345 1,253
Selling square footage 768 756 682
Total Athletic Group
Number of stores 3,559 3,582 3,595
Gross square footage 13,001 13,076 12,616
Selling square footage 7,855 7,914 7,878
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