Paul Fireman Negatively Quotations

While in the short term this is negatively impacting our operating results, we believe our strategy to reposition our business with Footlocker will help to improve our operating margins in the future.

The overall industry outlook is not improving in the short term, and the economic conditions in Asia Pacific and Latin America continue to negatively impact our business, ... The domestic market is suffering from heavy promotions at retail, which is affecting our performance. And the well publicized conditions in Japan and Korea, our two largest markets in the Far East, has caused reported sales to decline approximately 50 percent when compared to last year.