The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Foot Locker Inc will buy two smaller shoe store chains for a total of about $1.1 billion in cash, the footwear retailer said on Monday as it looks to expand its business beyond malls and extend its reach in Asia.
The company is buying California-based WSS for $750 million and Japanese streetwear retailer Atmos for $360 million, it said in separate statements.
Pent-up demand for sneakers and athletic gear from US shoppers, as well as government stimulus have boosted Foot Locker’s sales this year, but the company has said it was looking to focus beyond malls whose traffic has been pressured by the pandemic and a surge in online shopping.
WSS has a fleet of 93 off-mall stores across California, Texas, Arizona and Nevada, and has a largely Hispanic consumer base which Foot Locker is looking to tap into.
ADVERTISEMENT
Atmos, which has most of its 49 stores in Japan, is popular for its collection of special edition footwear in collaboration with brands including Nike Inc.
WSS and Atmos will continue to operate under their own names. Both the deals, which were first reported by the Wall Street Journal, will be funded through available cash, Foot Locker said.
Evercore served as financial adviser to Foot Locker on both the deals, while RW Baird advised WSS.
By Uday Sampath; Editor: Vinay Dwivedi
Learn more:
How one of the world’s biggest athletic footwear retailers stumbled through the sneaker boom, but plans to catch up with the market.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.