FOOT LOCKER, INC. REPORTS SECOND QUARTER RESULTS

· Second Quarter EPS from Continuing Operations of $0.28

· Company Updates Guidance for Balance of Year

· First Foot Locker Store Opened in Switzerland

NEW YORK, NY, August 18, 2005 – Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its second quarter ended July 30, 2005.

Second Quarter Results

Net income decreased to $0.28 per share, or $44 million, from $0.53 per share, or $82 million last year. Second quarter results in 2004 included an income tax benefit of $37 million, or $0.24 per share, related to discontinued operations.

Income from continuing operations decreased 3.4 percent to $0.28 per share, or $44 million, from $0.29 per share, or $45 million last year. Included in last year’s results was a loss of $10 million, or $0.07 per share, related to the integration and operation of the 349-store Footaction chain that the Company acquired in May 2004. Also included in last year’s income from continuing operations were income tax benefits related to resolution of U.S. and foreign income tax examinations, resulting in an effective tax rate that was significantly lower than the second quarter of this year. The Company’s higher effective tax rate this year versus the second quarter of last year resulted in an unfavorable comparison of $0.07 per share.

For the second quarter period, sales increased 2.8 percent to $1,304 million this year compared with sales of $1,268 million in the year-ago period. Second quarter comparable-store sales increased 1.3 percent.

“Our second quarter earnings per share were below our initial expectations due to the disappointing financial results of our European business,” stated Matthew D. Serra, Foot Locker, Inc.’s Chairman and Chief Executive Officer. “The second quarter profit decline at Foot Locker Europe essentially offset the combined profit increase generated by our U.S. and other international divisions. We are particularly pleased with the second quarter financial results of our Champs Sports division and expect that our Footaction business will contribute meaningfully to our Company’s financial results for the balance of this year.”

Year-to-Date Results

Year-to-date net income decreased to $0.65 per share, or $102 million, compared with $0.84 per share, or $130 million last year. Income from continuing operations increased 8.3 percent, to $0.65 per share, or $102 million, versus $0.60 per share, or $92 million last year. Year-to-date sales increased 9.3 percent to $2,681 million compared with sales of $2,454 million last year. Comparable-store sales increased 2.0 percent.

“Given the recent challenges in our European business, we have revised our outlook for the balance of the year. We currently expect that our earnings per share from continuing operations to increase 2 to 12 percent during our third and fourth quarters of 2005 as compared with the corresponding periods of the prior year. We believe it is prudent to maintain this outlook for the balance of this year until we see signs of a consistent improvement in our business trends in Europe.”

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Capital Expenditure Update

The Company opened 27 new stores, remodeled/relocated 124 stores and closed 29 stores during the second quarter. At July 30, 2005, the Company operated 3,926 stores in 19 countries in North America, Europe and Australia. The Company also entered its 15th European nation during the second quarter with a new store in Switzerland.

For the full year, the Company increased its targeted store openings program from 100 to 110 new stores, including a total of 23 to be operated under the Footaction brand. The increased openings are expected to be funded under the Company’s existing $170 million capital expenditure program.

During the second quarter, the Company began to execute its $50 million share purchase program, by purchasing 120,000 shares in the open market at a cost of $3 million. Additional shares may be purchased based upon market prices and other factors.

The Company is hosting a live conference call at 10:00 am (EDT) on Friday, August 19, 2005. 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 29, 2005.

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, disruptions to transportation services and distribution, 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. 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.

Condensed Consolidated Statements of Operations

(unaudited)

Periods ended July 30, 2005 and July 31, 2004

(In millions, except per share amounts)

	Second Quarter 2005	Second Quarter 2004
Sales	$ 1,304	$ 1,268

Cost of sales ⁽¹⁾	927	899
Selling, general and administrative expenses	265	268
Depreciation and amortization ⁽¹⁾	41	38
Restructuring charge	---	2
Interest expense, net	3	4
Other income	(3)	---
	1,233	1,211
Income from continuing operations before income taxes	71	57
Income tax expense	27	12
Income from continuing operations	44	45

Income from disposal of discontinued operations, net of tax	---	37
Net income	$ 44	$ 82

Diluted EPS:
Income from continuing operations	$ 0.28	$ 0.29
Income from disposal of discontinued operations, net of tax	---	0.24
Net income	$ 0.28	$ 0.53

Weighted-average diluted shares outstanding	158.3	157.1

	Year-To-Date 2005	Year-To-Date 2004
Sales	$ 2,681	$ 2,454

Cost of sales ⁽¹⁾	1,886	1,724
Selling, general and administrative expenses	548	516
Depreciation and amortization ⁽¹⁾	82	73
Restructuring charge	---	2
Interest expense, net	6	8
Other income	(3)	---
	2,519	2,323
Income from continuing operations before income taxes	162	131
Income tax expense	60	39
Income from continuing operations	102	92

Income from disposal of discontinued operations, net of tax	---	38
Net income	$ 102	$ 130

Diluted EPS:
Income from continuing operations	$ 0.65	$ 0.60
Income from disposal of discontinued operations, net of tax	---	0.24
Net income	$ 0.65	$ 0.84

Weighted-average diluted shares outstanding	158.2	156.6

(1) Certain amounts in the prior fiscal year have been reclassified to conform to the presentation in the current fiscal year related to the accounting for construction allowances received from landlords.

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FOOT LOCKER, INC.

Condensed Consolidated Balance Sheets

(unaudited)

(In millions)

	July 30, 2005	July 31, 2004
Assets

CURRENT ASSETS
Cash, cash equivalents and short-term i