Foot Locker Buys Two Footwear Chains For $ 1.1 Billion

FootLocker, a US sportswear and footwear retailer, has spent $ 1.1 billion on acquisitions to accelerate its expansion in the Asia Pacific region and consolidate its position in North America.

The New York-based company announced on Monday that it plans to acquire Eurostar, the parent company of US-based athletic shoes and apparel retailer WSS, for $ 750 million.

With 93 off-mall stores in key markets in California, Texas, Arizona and Nevada, WSS focuses on the “large and fast growing” Hispanic consumer base. In fiscal year 2020, the company generated approximately $ 425 million and had a three-year CAGR of approximately 15%.

“We will benefit from WSS’s differentiated market position and complementary customer base and real estate portfolio,” said Foot Locker.

In another announcement the same day, Foot Locker said it plans to acquire KK, the owner and licensor of Japanese-based streetwear retailer atmos, for $ 360 million.

Foot Locker expects to close both transactions in the third quarter.

The retail store has 49 stores worldwide, including 39 stores in Japan operated by Atmos Banner and the women’s brand Atmos Pink. Fiscal 2020 revenue was approximately $ 175 million, more than 60% of which was generated through digital channels.

Foot Locker said the acquisition will accelerate global expansion with “a very strategic foothold in Japan.”

Richard A, Chairman and CEO of Foot Locker. Johnson said the two acquisitions reflect the company’s commitment to growth strategies and “new and gradual consumer engagement.”

“We are confident in our ability to continue to create significant long-term value for our shareholders, consumers, vendor partners and other stakeholders through continued investment in our business,” said Johnson.

Foot Locker Buys Two Footwear Chains For $ 1.1 Billion

Source link Foot Locker Buys Two Footwear Chains For $ 1.1 Billion

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