Foot Locker Inc. (NYSE: FL) is enhancing its growth within the Asia Pacific and North America after it entered definitive agreements to accumulate Textual content Buying and selling Firm (atmos) and Eurostar Inc. The corporate is diversifying its product combine and retailer footprint by including top-tier merchandise and partnerships anticipated to be earnings accretive this yr.
Foot Locker increasing attain within the Asia Pacific
The acquisition of Textual content Buying and selling Firm will enhance Foot Locker’s attain globally given its appreciable strategic foothold in Japan. Notably, atmos reported income of $175 million in FY2020 with 60% generated vial digital channels. Foot Locker CEO Richard A. Johnson mentioned:
Are you on the lookout for fast-news, hot-tips and market evaluation?
Sign-up for the Invezz newsletter, today.
“atmos is uniquely positioned by way of its modern retail shops, excessive digital penetration, and distinctive merchandise which have made it a key influencer of youth and sneaker tradition. With atmos, we’re executing towards our growth initiative within the quickly rising Asia-Pacific market, establishing a essential entry level in Japan and benefitting from quick scale. We’re thrilled to convey atmos into our portfolio of manufacturers and construct on the sturdy basis of this differentiated enterprise.”
atmos Founder Hidefumi Hommyo mentioned:
“atmos was based in 2000 as a small retail retailer within the again streets of Ura-Harajuku. Our ardour for sneaker tradition and talent to attach with our prospects have been the driving forces of our progress ever since. Importantly, Foot Locker shares this ardour, and we’re excited to hitch forces with them to propel atmos into our subsequent part of progress.”
Foot Locker to accumulate Eurostar
The corporate can even purchase Eurostar for $750 million in an all-cash transaction. Eurostar operates 93 off-mall shops in Arizona, Nevada, Texas, and California. Most significantly, Eurostar has deep connections with prospects, and 80% of its gross sales come from its loyalty program members. Johnson mentioned:
“WSS has constructed a profitable, high-growth enterprise by pioneering the neighborhood-based retailer mannequin, constructed on group engagement and a full-family providing. This acquisition enhances our product combine and offers entry to a buyer base and retailer footprint which can be each differentiated from and complementary to our present portfolio.”
Eurostar CEO Rick Mina mentioned:
“Our staff is worked up about being part of the Foot Locker household. The skills, sources, and wealthy historical past of a number one athletic specialty footwear and attire retailer will make WSS a greater and stronger enterprise.”
67% of retail CFD accounts lose cash