FOOT LOCKER, INC. REPORTS SECOND QUARTER RESULTS

· Earnings Per Share from Continuing Operations Increased 14 Percent to $0.25 Per Share

· Debt, Net of Cash, Decreased to $24 Million from $87 Million Last Year

· Company Extends Its Revolving Credit Facility to 2006

· Company Sets Third Quarter Earnings Guidance At $0.31-to-$0.33 Per Share

NEW YORK, NY, August 21, 2003 – Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its second quarter ended August 2, 2003.

Second Quarter Results

Income from continuing operations increased 14 percent to $0.25 per share, or $37 million, from $0.22 per share, or $33 million last year. For the 13-week second quarter period, sales increased 3.5 percent to $1,123 million this year compared with sales of $1,085 million last year. Second quarter comparable-store sales decreased 4.4 percent.

Year-to-Date Results

Income from continuing operations for the 26-week period ended August 2, 2003, increased to $0.52 per share, or $76 million, compared with $0.48 per share, or $71 million last year. Year-to-date sales increased 3.5 percent to $2,251 million, compared with sales of $2,175 million last year. Comparable-store sales decreased 3.5 percent.

Debt, net of cash, was reduced to $24 million from $87 million last year. Merchandise inventories remain current, and are both on plan and well positioned to support third quarter sales expectations.

Matthew D. Serra, Foot Locker, Inc.’s President and Chief Executive Officer stated, “The Company’s sales trend significantly improved in late July and this has continued into the third week of August. We expect our average price points to stabilize later in the third quarter as we anniversary against the current fashion trend of lower-priced classic footwear. Additionally, we expect our gross margin rate to continue to be favorable to last year due to our somewhat tempered promotional posture in the United States. Therefore, we currently expect third quarter earnings of $0.31-to-$0.33 per share, in line with analysts’ estimates.”

On July 30, 2003, the Company amended and restated its revolving credit facility with its existing bank group, achieving a lower pricing structure and increased covenant flexibility, while extending the maturity date to July 2006. The credit facility was also increased in size by $10 million, to $200 million.

On August 20, 2003, the Board of Directors declared a quarterly dividend on the Company’s common stock of $0.03 per share. The dividend will be payable October 31, 2003 to shareholders of record on October 17, 2003.

During the second quarter, the Company opened 38 stores, remodeled/relocated 118 stores and closed 30 stores. The store openings included the Company’s entrance into the Portugal and New Zealand markets. At August 2, 2003 the Company operated 3,608 stores in 16 countries in North America, Europe and Australia.

The Company is hosting a live conference call at 10:00 am (EST) on Thursday, August 21, 2003. 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 25, 2003.

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, the Company’s reliance on a few key vendors for a majority of its merchandise purchases (including a significant portion from one key vendor), unseasonable weather, risks associated with foreign global sourcing, including political instability, changes in import regulations and the presence of severe acute respiratory syndrome, economic conditions worldwide, any changes in business, political and economic conditions due to the threat of future terrorist activities in the United States or in other parts of the world and related U.S. military action overseas, and the ability of the Company to execute its business plans effectively with regard to each of its business units, including its plans for the marquee and launch footwear component of its business. 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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FOOT LOCKER, INC.

Consolidated Statements of Operations

(unaudited)

Periods ended August 2, 2003 and August 3, 2002

(In millions, except per share amounts)

	Second Quarter 2003	Second Quarter 2002
Sales	$ 1,123	$ 1,085

Cost of sales	792	773
Selling, general and administrative expenses	233	220
Depreciation and amortization	38	38
Restructuring charge (income) ⁽¹⁾	1	(1)
Interest expense, net	4	7
Other income ⁽²⁾	--	(3)
	1,068	1,034
Income from continuing operations before income taxes	55	51
Income tax expense	18	18
Income from continuing operations	37	33

Loss on disposal of discontinued operations, net of tax	(1)	(2)
Net income	$ 36	$ 31

Diluted EPS:
Income from continuing operations	$ 0.25	$ 0.22
Loss on disposal of discontinued operations, net of tax	(0.01)	(0.01)
Net income	$ 0.24	$ 0.21

Weighted-average diluted shares outstanding	152.1	151.0

	Year-To-Date 2003	Year-To-Date 2002
Sales	$ 2,251	$ 2,175

Cost of sales	1,575	1,543
Selling, general and administrative expenses	474	440
Depreciation and amortization	75	74
Restructuring charge (income) ⁽¹⁾	1	(1)
Interest expense, net	9	14
Other income ⁽²⁾	--	(3)
	2,134	2,067
Income from continuing operations before income taxes	117	108
Income tax expense	41	37
Income from continuing operations	76	71

Loss on disposal of discontinued operations, net of tax	(1)	(20)
Cumulative effect of accounting changes, net of tax ⁽³⁾	(1)	--
Net income	$ 74	$ 51

Diluted EPS:
Income from continuing operations	$ 0.52	$ 0.48
Loss on disposal of discontinued operations, net of tax	(0.01)	(0.13)
Cumulative effect of accounting changes, net of tax ⁽³⁾	--	--