Footstar, Inc (NYSE:FTS) today reported that total sales for the five-week period ended July 1, 2000 increased 17.0% to $220.6 million from sales of $188.6 million in the same period last year. Total sales at the company's Meldisco division increased 2.6% to $132.4 million, and total sales for the athletic segment increased 48.2% to $88.2 million. Footstar's comparable store sales for the month of June increased 0.2%. Meldisco's comparable store sales increased 1.1%, while comparable store sales for the athletic segment decreased 1.9%.

Mickey Robinson, chairman and chief executive officer, commented: "Footstar generated a solid performance in June, driven by the continued excellent results of the Thom McAn brand and strong sales of work boots at our Meldisco division. Sales at Footaction were in line with expectations. Higher men's footwear sales were offset by lower sales of women's and children's products. The men's basketball, running, and cross training categories all had strong results in the period. These results were impressive considering that in basketball, we again experienced challenging comparisons due to strong Jordan-related sales in the year-ago period. Excluding sales of Jordan-related product from both periods, Footaction's same store sales would have increased over 3% in June, 2000.

"At Just For Feet, we continue to make good progress in integrating and capitalizing on the opportunities afforded by this acquisition. During the month, we completed the full integration of the chain into Footstar's operations, and we continued to make headway in the liquidation of older product. With our current inventory ownership and significant receipts expected in July, we should be very well-positioned for the back-to-school season," Mr Robinson concluded.

For the thirteen-week period ended July 1, 2000, Footstar's total sales increased 23.1% to $589.4 million from $479.0 million for the prior-year period. Meldisco's total sales for the thirteen-week period increased 8.5% to $357.2 million from $329.2 million for the prior-year period, while sales for the athletic segment increased 55.0% to $232.2 million from $149.8 million in the same period last year. Footstar's same store sales for the thirteen-week period increased 5.9%. Meldisco's comparable store sales rose 7.1%, while the athletic segment increased 3.1%.

For the twenty-six week period ended July 1, 2000, Footstar's total sales increased 12.1% to $1,029.1 million from sales of $918.1 million in the same period in 1999. Total sales for Meldisco increased 4.7% to $631.4 million, and total sales for the athletic segment increased 26.1% to $397.7 million. Footstar's comparable store sales for the year-to-date period increased 1.4%. Comparable store sales increased 3.7% at Meldisco and declined 3.0% for the athletic segment.

On March 7, 2000, Footstar acquired certain assets from Just For Feet, Inc. including 79 Just For Feet superstores, 23 specialty stores and the Internet business. Accordingly, sales results for the year-to-date period include sales generated by those assets since March 7, 2000. These sales have been combined with the sales of the Company's Footaction division and are reported as a group called the athletic segment. Sales generated by the acquired assets are treated as sales of new stores and, therefore, will not be included in the comparable store sales base until they have been part of Footstar's operations for twelve months. Accordingly, comparable store sales for the athletic segment represent only Footaction's same store sales for the indicated periods.

Footstar, Inc. headquartered in Mahwah, New Jersey, is a leading footwear retailer. As of July 1, 2000, the Company's Footaction division, headquartered in Irving, Texas, near Dallas, operated 552 mostly mall-based stores in 43 states, Puerto Rico, and the U.S. Virgin Islands. The Company's Just For Feet division, headquartered in Mahwah, New Jersey, at July 1, 2000 operated 79 superstores located in the Southern half of the country. Both divisions sell branded athletic footwear and apparel. The Company's Meldisco division is a leader in the discount footwear segment, operating 2,477 licensed footwear departments, primarily in Kmart stores.

Except for the historical information contained herein, the matters discussed in this release are forward looking statements that involve risks and uncertainties that may cause actual results to differ from those expressed in any of the forward looking statements. Such risks and uncertainties include, but are not limited to, the ability of the company to execute its integration and other plans, uncertainties related to the effect of competitive products and pricing, consumer demand for footwear, unseasonable weather, consumer acceptance of our merchandise mix and retail locations, the availability of products, and the other risks detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update forward looking statements to reflect events or circumstances after the date such statements were made.

Footstar, Inc.
Same Store Sales
Change from Prior Year
Five Weeks
Thirteen Weeks
Twenty-six Weeks
Ended
Ended
Ended
July 1, 2000
July 1, 2000
July 1, 2000
Meldisco
1.1%
7.1%
3.7%
(1) Athletic segment
(1.9%)
3.1%
(3.0%)
Footstar, Inc.
0.2%
5.9%
1.4%


(1) The Athletic segment includes sales of Footaction and Just For Feet. Since Just For Feet's stores are treated as new stores, same store sales represent only Footaction's performance for the indicated periods.