FOOT LOCKER, INC. REPORTS SECOND QUARTER RESULTS

· Adjusted Net Income Increased 14 Percent to $32 Million, or $0.22 Per Share, for the Second Quarter

· Adjusted Pre-Tax Income Increased 25 Percent to $50 Million

· Debt, Net of Cash, Decreased to $87 Million from $270 Million Last Year

· Company Sets Third Quarter Earnings Guidance At $0.28-to-$0.30 Per Share

NEW YORK, NY, August 22, 2002 – Foot Locker, Inc. (NYSE: Z), the New York-based specialty athletic retailer, today reported financial results for its second quarter ended August 3, 2002.

Second Quarter Results

Adjusted net income for the second quarter ended August 3, 2002, increased 14 percent to $32 million, or $0.22 per share, compared with $28 million, or $0.20 per share, last year. Adjusted pre-tax income increased 25 percent to $50 million from $40 million last year. For the 13-week second quarter period, sales increased 5.1 percent to $1,085 million this year compared with adjusted sales of $1,031 million last year. Second quarter comparable-store sales increased 0.9 percent.

"We successfully grew our sales and earnings, generated positive cash flow and strengthened our balance sheet, in spite of the continuing weakness in consumer spending,” stated Matthew D. Serra, Foot Locker, Inc.’s President and Chief Executive Officer. “In addition to reporting our 12^th consecutive quarter of adjusted EPS growth versus the same period of the prior year, we are well positioned to continue to achieve improved results.”

Year-to-Date Results

Adjusted net income for the 26-week period ended August 3, 2002, increased to $70 million, or $0.48 per share, compared with $62 million, or $0.44 per share, last year. Year-to-date sales increased 4.3 percent to $2,175 million, compared with adjusted sales of $2,086 million last year, reflecting a comparable-store sales increase of 1.2 percent.

Debt, net of cash, was reduced to $87 million from $270 million last year. Merchandise inventories remain on plan and well positioned to support third quarter sales expectations.

Mr. Serra continued, "The challenging economic environment in the United States led to a somewhat softening sales trend in July which has continued into the first three weeks of August. We have confidence, however, that the recent sales trend will reverse in September, as year-over-year comparisons become far more favorable. The percentage of our product offerings in the higher-priced marquee footwear category is consistent with historical levels and well positioned for the fall season. Therefore, we now expect third quarter earnings of $0.28-to-$0.30 per share. For the full year, we now expect earnings of $1.12-to-$1.14 per share.”

During the second quarter, the Company opened 41 stores, remodeled/relocated 57 stores and closed 23 stores. For the full year, the Company expects to open approximately 170 new stores, remodel or relocate over 200 existing stores and close approximately 100 under-performing stores. The Company expects its total store count to increase by approximately 2 percent for the total year. At August 3, 2002 the Company operated 3,600 stores in 14 countries in North America, Europe and Australia.

The Company also recorded an after-tax charge to discontinued operations of $2 million, or $0.01 per share, during the second quarter of 2002 to reflect adjustments to reserves related to businesses disposed in previous years.

The Company is hosting a live conference call at 10:00 am (EDT) on Thursday, August 22, 2002. This conference call may be accessed live from the Investor Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. The conference call will be available for webcast replay until 5:00 pm on Monday, August 26, 2002.

Reported results are presented in accordance with accounting principles generally accepted in the United States of America. Adjusted results are from continuing operations and exclude the operations and disposition of The San Francisco Music Box Company and Burger King franchises. The reported results for all operations and a reconciliation between reported and adjusted results are attached to this press release.

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 effect of competitive products and pricing, customer acceptance of the Company’s merchandise mix and retail locations, unseasonable weather, risks associated with foreign global sourcing, including political instability and changes in import regulations, economic conditions worldwide, and the ability of the Company to execute its business plans effectively with regard to each of its business units. 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.

FOOT LOCKER, INC.

Consolidated Statements of Operations

(unaudited)

Periods ended August 3, 2002 and August 4, 2001

(In millions, except per share amounts)


	13 Weeks 2002			13 Weeks 2001
Second Quarter	Reported Results	Disposed Operations	As Adjusted	Reported Results	Disposed Operations	As Adjusted
Sales	$ 1,085	$ --	$1,085	$ 1,048	$ 17	$ 1,031

Cost of sales	773	--	773	742	12	730
Selling, general and administrative expenses	220	--	220	227	9	218
Depreciation and amortization	38	--	38	38	--	38
Restructuring charge (income)	(1)	(1)	--	32	32	--
Interest expense, net	7	--	7	6	--	6
Other income	(3)	--	(3)	(1)	--	(1)
	1,034	(1)	1,035	1,044	53	991
Income from continuing operations before income taxes	51	1	50	4	(36)	40
Income tax expense	18	--	18	--	(12)	12
Income from continuing operations	33	1	32	4	(24)	28

Loss on disposal of discontinued operations, net of tax	(2)	(2)	--	(18)	(18)	--
Net income (loss)	$ 31	$ (1)	$ 32	$ (14)	$ (42)	$ 28

Diluted EPS:
Income from continuing operations	$ 0.22	--	$ 0.22	$ 0.03	$ (0.17)	$ 0.20
Loss from discontinued operations	(0.01)	(0.01)	--	(0.13)	(0.13)	--
Net income (loss)	$ 0.21	$ (0.01)	$ 0.22	$ (0.10)	$ (0.30)	$ 0.20

Weighted-average diluted shares outstanding	151.0		151.0	140.8		146.7


Year-To-Date	26 Weeks 2002			26 Weeks 2001
	Reported Results	Disposed Operations	As Adjusted	Reported Results	Disposed Operations	As Adjusted
Sales	$ 2,175	$ --	$ 2,175	$ 2,120	$ 34	$ 2,086

Cost of sales	1,543	--	1,543	1,488	23	1,465
Selling, general and administrative expenses	440	--	440	458	18	440
Depreciation and amortization	74	--	74	76	--	76
Restructuring charge (income)	(1)	(1)	--	32	32	--
Interest expense, net	14