(Provides details on deals, providers)
Aug 2 (Reuters) – Foot Locker Inc will acquire two more compact shoe shop chains for a total of about $1.1 billion in income, the footwear retailer explained on Monday as it appears to increase its small business further than malls and prolong its achieve in Asia.
The organization is getting California-primarily based WSS for $750 million and Japanese streetwear retailer Atmos for $360 million, it mentioned in separate statements.
Pent-up demand for sneakers and athletic equipment from U.S. shoppers, as properly as authorities stimulus have boosted Foot Locker’s gross sales this yr, but the business has reported it was searching to focus past malls whose visitors has been pressured by the pandemic and a surge in on-line searching.
WSS has a fleet of 93 off-mall stores throughout California, Texas, Arizona and Nevada, and has a largely Hispanic consumer base which Foot Locker is looking to faucet into.
Atmos, which has most of its 49 shops in Japan, is well-liked for its selection of distinctive version footwear in collaboration with manufacturers together with Nike Inc.
WSS and Atmos will continue to function under their personal names. Both of those the bargains, which had been 1st reported by the Wall Road Journal, will be funded by way of obtainable hard cash, Foot Locker said.
Evercore served as economic adviser to Foot Locker on both of those the specials, although RW Baird advised WSS.
(Reporting by Uday Sampath in Bengaluru modifying by Vinay Dwivedi)
